Crunching numbers on my own before I jump in
So here is my attempt at crunching the numbers on my own I feel like I have finally grasped it. looking at this property at first glance:
Duplex 2 units 2bed 1 bath each sale price 87,000
each unit low end rent 600 each
annual income $14,400
vacancy 10% $1440.00
property tax $1740
insurance $1200
management 10% $1440.00
maintence 5% $720.00
reserve savings 5% $720.00
mortgage $400 a month or $4800 annually
Total operating expenses $12,060
cashflow would be $2340 or $194 a month
cash on cash return would be 76% roughly
cap rate 8%
Downpayment about $3000
This is also assuming a 4% down payment i know my numbers would exactly look like this because I'll be living in one side although I guess it could because I will act like a tenant myself and pay my rent.
Am i figuring correctly?? Does this look like a good deal to you guys I feel like it is. Right now I'm just going thru every single listing and crunching the number so I get the hang of it. Is there anything I'm missing or that I should add or am I over estimating any feedback would be greatly appreciated.