What do you think of this deal ?

7 Replies

So I just purchased a deal and closed this week . The new property is a duplex . I have not targeted duplexes because I have focusing on targeting larger units however, this deal was put in front of me and it seemed to good to be true ! What do you think? Here are the details .

Purchase price : $32,0000

Annual taxes: $2200

I was able to use leverage on this property so...
$12200k down

$325 a month mortgage with escrowed taxes and insurance .

House is actually In excellent condition with new windows roof and siding . Some of the appliances are older but I'm not overall concerned about problems in the near future .

We do pay water in my area usually it's about 200 per unit per year

The utilities are separate tenant pays .

We have in-house management for our properties so total cost on that is around $100.00 a month and no other property management fees . This does not include supplies obviously .

I know what I have it calculated cash flowing but I wanted to see what you guys come up with ! I am newer to the forum and I am thinking this cash flows pretty well for a leveraged duplex . Let me know what you all think or if you have any other questions about the numbers !

What will it rent for? I didn't see if in your post. 

So your expense per month is $808 without factoring in the vacancy and cap ex. 

So if you rent significantly exceeds it, it will be good.

Sorry I meant to post that . 650 per apartment both 2 bedrooms . $1300 total.

Kaz how did you get to 800$ before cap ex ?

How I have expenses before cap ex and vacancy

325$ mortgage taxes and insurance per month
33 $ water bill per month
100$ my management team eat expense (spread over all properties )

So a total of $457 expenses before cap ex and vacancy .

Sorry, I thought water bill was per month. In that case, you are correct. So if your cap ex and vacancy is nothing outrageous, looks like you will be cash flowing. 

Bryant Schur where is the property? Your numbers look good to me.

@Account Closed I'd do the deal. passes my $100 per month/per unit test. COCR roughly 20% so you'll be all money out in 4.5-5 years.

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