Analyze Low Income Duplex in Winter Garden FL

[Michelle Elsaid]

I am looking at this 14818 Astrolyn Street, Winter Garden, FL duplex. Currently Rented for $650/ea side. $1300 Revenue. Listed for $99K. Beats 1% rule (good for florida)

Now, value of the house aside (I think it is worth much less), this looks profitable even with a low down payment. It is in a high income town, not so great neighborhood but low crime. Why has this been sitting on the market? Thoughts?

Please see quick math here for a $10K down payment ( 5% IR, 1% PMI, 900/annual taxes, $0 HOA)

Mortgage/Tax/PMI/Insurance: $690/month

Capex (20% of payment): $150

Vacancy (10% of payment): $75

Management: $130

With $1300 in rental income this generates at least $255 a month - better if I increase my downpayment.

Here is zillow link:

http://www.zillow.com/homedetails/14818-Astrolyn-St-Winter-Garden-FL-34787/82077144_zpid/

I'm interested in these low income properties so i'm curious what you think of this deal. Thank you!

[Chris Seveney]

Your numbers are off - capex really depends on current property but people like to carry 10% of rent ($130), repairs are another 10% ($130), vacancy again depends on area but if you assume 8% ($104)

Big question is who pays utilities. If you are paying utilities that can be $100+ a month per unit easy and can kill your cash flow

For capex you should keep track of all major systems and appliances and when you will need to replace and work backwards from there for capex