Updated over 7 years ago on . Most recent reply
Need help analyzing a rental property
Some background.
I am looking to purchase my first home, and investment property. We are looking at multifamily homes. Even though we are planning on living in one of the units, I want to treat this as if though we will rent both of them because eventually we will. I also want to include property management because even though I will manage this now, I may not in the future. Rental income is based of off what the Redfin page says they are currently getting.The numbers I am going to show you are for one that we were interested in, but after doing some math, it doesnt look so good. I am not really sure if I am estimating my expenses correctly. Any help would be great. Thanks.
| Rental Property Analyzer | ||||
| Asking Price: | $389,000.00 | |||
| Address: | 74-76 S Whipple, Lowell MA 01852 | |||
| # of Units: | 2 | |||
| Income | ||||
| Rental Income: | $3,000.00 | |||
| Other Income: | ||||
| Total Monthly Income: | $3,000.00 | |||
| Expenses | ||||
| Taxes: | $326.00 | |||
| Insurance: | $130.00 | |||
| Water/Sewer: | ||||
| Garbage: | ||||
| Electric: | ||||
| Gas: | ||||
| HOA Fees: | ||||
| Lawn/Snow: | ||||
| Vacancy: | $150.00 | |||
| Repairs: | $150.00 | |||
| CapEx: | $360.00 | |||
| Prop. Mngmnt: | $330.00 | |||
| Mortgage: | $1,718.00 | |||
| PMI: | $212.00 | |||
| Total Monthly Expenses: | $3,376.00 | |||
| Cash Flow | ||||
| Monthly Income: | $3,000.00 | |||
| Monthly Expenses: | $3,376.00 | |||
| Monthly Cash Flow: | -$376.00 | |||
| Total Annual Cash Flow: | -$4,512.00 | |||
| Cash on Cash Return | ||||
| Down Payment: | $50,000.00 | |||
| Closing Costs: | $10,000.00 | |||
| Rehab Budget: | ||||
| Misc Other: | ||||
| Total Investment: | $60,000.00 | |||
| Cash on Cash Return: | -7.52% |
Most Popular Reply
This would lose money, as you can see, but not only that, you haven't even included all the expenses.
- I see a driveway in the photo, and the snow is not going to remove itself.
- There appears to be a backyard from the photo, and the grass won't mow itself either
- You haven't included water/sewer - Lowell doesn't have wells in that area, I'm pretty sure
- There may be common area electric for smoke detectors and outside lights, and if the basement is not part of a unit
- Find out whether there are common areas to heat.
So if you want something that cash flows once you have moved out, this won't be it.