[Calc Review] Help me analyze this deal
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@Marcelo P Cordeiro How did you arrive at your numbers? Vacancy of 3% is your tenants staying an average of 33 1/3 months. Banks will underwrite at 5%. I like to use 8% or 1 turnover per year. If you have to evict it will take you more than 1 month to get them evicted. If it takes 3 ,months to evict to get back to your 3% average you next tenant needs to stay a 100 months. Unrealistic numbers for maintenance and capex. Base repair budget is $50 per unit. Capex you need to do a capex budget. One item in a capex budget; roof. life span 25 years. Say it will cost you $10000 for a new roof. $10000/25 years/12months in a year = $33 per month for that item. What if it is a 15 year old roof. Your effective lifespan is now 10 years. $10000/120 months = $83 per month. For a quick analysis I use 5% maintenance and 10% capex. I didn't see any PMI for less than 20% down.
Thanks for the inputs/feedback @Tim Herman. I'll rerun the numbers with the suggested budgets and add PMI, it seems it wont cashflow. Back to the hunt!
