Analyzing a Nashville Duplex (help a brother out, *again)
Nashville Suburbs Duplex:
Two 4 Bedroom units that have brand new renovations, HVAC, appliances, etc.
Tenant will pay all utilities.
Principle, Interest, Property Taxes and Home Insurance: $1700
I would be leaving $68,000 in the deal.
Projected rent values are $3900
$100 A month for trash? not sure about that.
Cap Ex 7.5%: $290
Repairs 5%: $195
Vacancy 10%: $390
Property Management 9%: $351
Expenses (Total)- $3026
Monthly cash flow: $874.
Nashville Investors, what am I missing? I know im leaving alot of money in the deal but my cash on cash return is still: $874 x 12 = 10,488/68,000= 15% annual return not including equity.
My cash on cash plus equity is 41.8%
($18,000 of equity built annually + 10,488 in rental income= 28,488/68,000= 41.8%)
*I know the capEx and repairs are low but its BRAND NEW*
This is all not including potential appreciation of the Nashville Market.
What am I missing? Someone play devils advocate with me.
*side note: Anyone looking to partner for equity in Nashville market, let me know. Couple of spots left.*