Updated over 9 years ago on .
Is this a good deal?
Hey guys,
I wanted to get your opinion on a duplex that I'm looking at. Below are the numbers that I'm crunching.
The seller (motivated) is willing to chip in $15,000 for the 2-car garage rehab. So the final price may be down to $54,000 (say I'm going with the listed price for this analysis' purposes) - and it'll also affect the CoC number if we take the $15,000 into account
| Price | $69,000 | |
| Rent (estimated) | $1,339 | |
| Rent/Price Ratio - 2% Rule | 1.94% | |
| Income | Rent | $1,339 |
| Expenses | Loan payment | ($270) |
| Property Tax | ($221) | |
| Property Insurance | ($117) | |
| Asset Management Fees | ($141) | |
| HOA | ($120) | |
| Investment (Total) | ($29,285) | |
| Down Payment | ($13,800) | |
| Rehab Estimate | ($11,000) | |
| Loan Fees & Costs | ($1,035) | |
| Acquisition Fee | ($2,415) | |
| Closing Costs | ($1,035) | |
| Other Costs (Total) | ($6,880) | |
| Maintenance Reserve | ($1,000) | |
| Stabilization Estimate | ($1,824) | |
| Prepay Tax & Insurance Estimate | ($4,056) | |
| TOTAL INITIAL INVESTMENT | ($36,165) | |
| Monthly Expenses | ($869) | |
| Monthly Cash Flow | $470 | |
| Total Cash Flow | $4,230 | |
| Cash on Cash Return | 11.70% |