Second look at numbers for one of my first deals
Hi everyone! Analyzing one of my first deals and would love a second set of eyes. I'm a bit and hold, value add investor. What are your thoughts?
It's a building on the main street in a suburb with a ton of foot and car traffic. The retail/multi-use building currently has two tenants (one has been there for a decade) and one additional vacant space. Current tenants just resigned new five-year leases with $300 monthly increase each year. Cap rate for the area and type of building is between 6-8.
Monthly gross income (total): $5,500
Purchase price: $724,900
Taxes: $9,441
Insurance: $5,199
No PM
Vacancy: 5% $275
Maintenance: 10% $550
NOI: $59,976
25% down, amortized over 20 years at 6.5% (being conservative, although think I'll come in under this)
Cash flow: $2,103.39
What am I missing or miscalculating?
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Developer
- KMA Capital, LLC