NH duplex

[Ken Rudolph]

Plan is to buy 2 duplexes from the same owner in Southern New Hampshire. Moderate amount of defered maintenance, but nothing I cant personally handle. 3/4 units are rented at $1,100/mo with long term tennants in place. The unit that is not rented will need about $3,000 worth of work to bring its rent to market at about $1,250. Once the other units become available, the plan is to repair those and re-rent for market. Also, I am running these assuming 3.5% financing because my feeling is that if it works with no money down, it may work better with money down.

All my numbers are ran at 1,100 a unit, not what they "will be":
Loan Amount (before downpayment): $190,000.00
Down Payment= $6,650.00
Monthly Loan Payment (P&I)= $984.26
HOA Monthly Fees= $0.00
Monthly Home Owners Ins.= $100.00 (high)
Monthly Taxes= $486.17
Monthly Maintenance estimate= $110.00 (5%)
Monthly Vacancy Cost estimate= $110.00 (5%)
Monthly Capital Expense estimate= $110.00 (5%)
Monthly Property Management Fee $176.00 (8%, although we plan to self manage.)
Total Monthly Costs = $2,076.43
Monthly Profitt = $123.57
Annual Profitt = $1,482.85
Debt Coverage Ratio = 1.06
Annual ROI = 10.48%
Months to break even= 114.51

[Richard C.]

Loan Amount (before downpayment): $380,000.00

Down Payment= $44,650.00(3.5% on one, 20% on the other, assumes you are moving into one.)
Monthly Loan Payment (P&I)= $2196 (assumes 5%)

Closing costs = $14,000

HOA Monthly Fees= $0.00

Monthly Home Owners Ins.= $200.00 (and not high, actually)

Monthly Taxes= $972 

Monthly Maintenance estimate= $220.00 (5%)

Monthly Vacancy Cost estimate= $220.00 (5%)

Monthly Capital Expense estimate= $220.00 (5%)

Monthly Property Management Fee $352.00 (8%, although we plan to self manage.)

Total Monthly Costs = $4,380

Monthly Net Cash Flow = $20

Annual Net Cash Flow = $240

Annual ROI = .004%

Plus all expenses Ann listed. Plus whatever you spend on deferred maintenance.