Saint Paul, MN Duplex analysis
Hi everyone,
My girlfriend and I are planning to move to the Saint Paul, MN area in about a year and we, like many others, are hoping to house hack a duplex. However I want to analyze properties as if I was buying them as a purely passive income property. After a few hours of scouring the forums and reading the county websites I came up with these numbers. I was hoping I could get some local input on how close I am to accurate numbers.
I went with a conservative $100 cashflow per door, mostly because my down payment will likely be less than 20% so I will have mortgage insurance. For rent I just poked around Zillow and other rental sites and looked specifically at small multifamily for comps. Maintenance, Cap Ex, Property Management and Vacancy loss I really just scoured the forums for what everyone else said they used in the region and this is sort of the conservative average I came up with for each. I did the same thing for water/Sewer. For Garbage I went to the Saint Paul city website and saw that fee was 102.44 per quarter per unit plus a 24.60 annual fee. That broke down to 70 per month. Honestly for snow and lawn care I kinda just read some forums and made my best guess. For the rental license fee I took the total cost of the Tier 2 rental licensee fee for a duplex ($305) and divided it by the term (60 months). This came out to 5.08 a month but I made it 10 for possible violations/fines. For mortgage, insurance, and property taxes I have simply been looking at what Zillow and Redfin estimate. I trust their mortgage numbers are pretty close (when adjusted) and I can double check the tax number through the county website but I am skeptical of the insurance numbers. Please tell me if Zillow and Redfin are way off on this.
I'm sure I have a long way to go and missed some things so any and all input is great!
St Paul, MN Duplexes
Rent:
- 3/2: $1300-1600?
- 3/1: $1200-1400
- 2/1: $900-1150
- 1/1: $750-900
- 0/1: $550-700?
Expenses:
- Maintenance - 9%
- Cap Ex - 9%
- Vacancy loss - 6%
- Property Management - 8%
- Water & sewer - 80/month
- Garbage - 70/month
- Snow Removal & yard Service - 60/month
- Rental License fees/fine - 15/month
- Insurance - PITI
- Property taxes -PITI
- Mortgage -PITI
- Profit - 200 minimum
My tentative equation:
(Rent x .68) - 425 > PITI = Deal