Duplex Analysis: Any advice?

[Chad Duncan]

Sale price: $225,000 

NOI: $14,400-$18,000

Possible Rents: $1900-$2200/month (total for both)

Rehab Costs: $15,000 (this would get the $2200/month rents I believe)

Estimated Expenses: $700/month (includes cap ex, vacancy, taxes, insurance, utilities...)

Estimated Mortgage: $1100/month

I am wondering if this could be a good deal, and if it could, what price I could buy it at. I came to the conclusion that @ $219,000 with closing costs assumed by seller, that this could be a good deal. Let me know your thoughts! If you need anymore info, please let me know.

Thanks

[Andrew Meyer]

Ok, so with those numbers I'm getting about $100/month in cash flow. With $2200 rent, I'm getting about $300/month in cash flow. If we are using only your $15k repairs, you are getting 20% ROI, so that's a very good number.

Now I know you will actually get better, since you won't have the 10% property management starting out, but IMO you always want to buy as if you will get property management, because you never know when you might have to get them in and you don't want to start getting negative cash flow because of it.