Duplex near downtown analysis correct me if I'm wrong.
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
Most Popular Reply
@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!