help me analyze this deal using Rental Calculator

[Account Closed]

[Kevin K.]

Hello, 

I'm assuming you're utilizing a 3.5% down payment (FHA) and also the closing costs appear low. I would double check these estimates with your local lender. Banks in my area generally require 20% down for non-owner occupied properties and 5% of the purchase price is allocated to closing costs, however this is specific to certain areas so double check with members in your area or local banks. I do believe for 3.5% FHA financing you must occupy one of the units.

Moreover, the projected expenses appear light or missing. For example property insurance, utilities (are the tenants paying heat & electric?), legal and professional etc. Also, how do the current rental rates line up with the market? 

The reason the ROI is so high is the low equity input into the equation. If the subject requires more cash the ROI will decrease.