Duplex near downtown analysis correct me if I'm wrong.

[Jonathan Perez]

So I have 2 duplexes near downtown that I'm interested in. I'll do them both in separate posts but here's the first one. FINANCING WITH FHA 3.5% down Interest rate at 3.75% 30 year ********************* 2 bed 1 bath each side DUPLEX ASKING $124,000 (I ANALYZED AT A PURCHASE PRICE OF $110,000) GROSS income - $1,325 MORTGAGE (insurance and taxes included) - $710 (Tenant is responsible for all utilities) EXCEPT owner pays sewer and trash. I put down $50 for that. VACANCY 10% - $135 REPAIRS + MAINTENENCE - $70 CAP EX 5% - $120 PM 10% - $135 Not sure I got the cash on cash and cap rate right but this is was I got; CASH ON CASH - 3% CAP RATE - I got 84% Let me now what you guys think. I feel like I did it right but would ya'lls thoughts and opinions. Thank you

[Kyle Scofield]

@Jonathan Perez After you subtract all expenses ($1220) from Rent ($1325) you have $105/month or $1,260 annually. This CoC return is 32%.

Cap rate is NOI/Value of Asset. Sooo $1,260/$110,00 in this case is only 1.1%

If your numbers are accurate for your area, then that's what your numbers would look like. Although it looks like your repairs and maintenance are only 5% of your Rent.. (usually recommended to include 10-15%, same with CapEx.... But then again, you are the expert in your own farm area.)

Any further questions, just let me know!