Updated over 5 years ago on .
First Deal Analysis - Purchasing a Duplex
Hello all,
I am looking at making my first REI and finally found a property I am extremely interested in but wanted to make sure I am not missing anything. I found an off market deal for a 3 bed 2 bath duplex each unit having a 2 car garage and a decent sized yard. Each duplex is individually metered gas and electric, the water/sewer/gas is shared and the previous landlord has been paying that separately. I would be moving into one of the units for probably 2-3 years while saving for a down payment for another deal, for my calculations I am assuming both units are rented out. Am I missing any costs or not budgeting enough towards any of the costs. Additionally, if I were to allow pets (which I will) I could likely add another 50-100$/month, I did these calculations as conservative as I could.
Any advice would be greatly appreciated!
| Purchase Price | $375,000.00 | ||
| Down Payment | 20.00% | ||
| Interest Rate | 2.88% | ||
| Loan Term (Months) | 360 | ||
| Vacancy Rate | 2.70% | ||
| Property Manager Rate | 0.00% | ||
| 1. Income | 3. Cash Flow | ||
| Rental Income | $2,600.00 | Total Monthly Income | $2,600.00 |
| Laundry Income | $0.00 | Total Monthly Expenses | $2,009.88 |
| Storage Income | $0.00 | Total Monthly Cash Flow | $590.12 |
| Misc Income | $0.00 | ||
| Total Income | $2,600.00 | Total Annual Cash Flow | $7,081.47 |
| 2. Expenses | 4. Cash on Cash Return | ||
| Mortgage | $1,244.68 | Down Payment | $75,000.00 |
| Property Taxes | $150.00 | Closing Costs | $0.00 |
| Home Insurance | $125.00 | Refurb Budget | $0.00 |
| Property Management (12%) | $0.00 | Misc Other | $0.00 |
| Vacancy (5%) | $70.20 | ||
| Water/Sewer | $100.00 | ||
| Garbage | $20.00 | ||
| Electric | $0.00 | ||
| Gas | $0.00 | ||
| HOA Fees | $0.00 | ||
| Lawn/Snow | $0.00 | ||
| Mortgage Insurance | $0.00 | ||
| Repairs | $150.00 | Total Investment | $75,000.00 |
| Capital Expenditures | $150.00 | Annual Cash Flow/Total Investment | 0.0944196 |
| Total Monthly Expenses | $2,009.88 | Cash on Cash Return | 9.442 |