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Updated over 11 years ago on . Most recent reply

User Stats

12
Posts
0
Votes
Frank Scala
  • Real Estate Investor
  • Farmingdale, NY
0
Votes |
12
Posts

Good first deal or not?

Frank Scala
  • Real Estate Investor
  • Farmingdale, NY
Posted

I think I have found the first property I'm going to pull the trigger on but was hoping the Bigger Pockets community could give me some feedback if it looks good. Here are the details on what I calculated:

Purchase Price: $100,000
Units: 4
Fully rented & tenants pay all utilities.

Unit 1 Rent: $575
Unit 2 Rent: $540
Unit 3 Rent: $525
Unit 4 Rent: $575
Gross Income: $2,215/m or $26,580/yr

Taxes: $271.53/m or $3258.31/yr
Insurance: $75/m or $900/yr
Trash: $59.33/m or $712/yr
Property Mgmt (10%): $221.50/m or $2,658/yr
Maintenance (10%): $221.50/m or $2,658/yr
Vacancy Rate (10%): $221.50/m or $2,658/yr
Total Expenses: $1,070.36/m or $12,844.32
Net Operating Income: $1,144.64/m or $13,735.68

Mortgage Payment on $80,000 for 30 yrs at 5%: $429.46/m
Cash Flow: $715.18/m or $8,582.16/yr

Return On Investment: 8.58%
Capitalization Rate: 13.74%


Any tips, advice or thoughts would be appreciated. Thanks!

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