Duplex rental analysis.......could this be my first?!
I'm still in search of my first duplex. I've found one I'm interested in and currently talking with the owner. It's located in a low income area, but a new developer is trying to turn the neighborhood around and bring new business in.
Bottom unit is 2/1, upper unit is 1/1. Separate electric meters.
Asking: 24,900
Needed repairs: 15k
Rent income: M-850 A-10,200
Taxes: M-43.60 A-523.15
Insurance: M-45 A-540
Vacancy: 42.50
PM: 68
Maint: 42.50
Capex: 42.50
Water: 75
Total expenses: M-359.10 A-4309.20
Net cashflow: M-490.90 A-5890.80
Property appr rate: 2%
Rent appr rate: 2%
No debt service. I'm paying cash for my first multifamily. I can always get a mortgage after repairs are made if I decide to acquire more properties quickly. I also think he's a bit negotiable on the asking price. The last thing left to do is verify needed repairs. I think this will make or break the deal.
What do you think? What am I missing?