So... How am I doing? (w/ my Property Analysis skills)

[Ray Hunsberger]

Just getting my feet under me here and have been spending 20-30 mins here and there analyzing multi-family properties in my local area. I was hoping to get some feedback to verify I'm understanding everything correctly and make sure I'm not making a "fatal flaw" at this stage of the analysis.

I'm using Brandon's "Buy and Hold" Calculator that I found here on the forums. Here's the property listing in Philadelphia:

Sample Analysis Property

Cap rate was found using RealtyTrac averages.

Here's a screenshot of my analysis worksheet:

ASSUMPTIONS

- 20% Down

- 2 Month's mortgage in holding costs

- 4.8% interest rate based on a mortgage broker buddy

- Insurance = Total guess. (is there as public resource that has this info?)

- Property Taxes - From listing and divided by 12

- "Other Expenses" = Total guess.

Thanks,

Ray

[Bill Jacobsen]

As stated above your estimate for repairs is probably low. My estimate on a 1900 built property is $250 per month. I would include another $100 per month for capital reserves.

I would also include a vacancy rate and to evaluate as an investment, a management fee.

Good Luck.

Bill