South Central Wisconsin Duplex Analysis

[Rocky Jones]

Hey All -

I'm trying to analyze my first "off-MLS" deal and would love your thoughts. What am I not taking into account and what assumptions would you change? I'm expecting to do a traditional 20% down mortgage (and looking to do seller financing for the 20% down) but am open to other options including a VA loan or a more "creative" option.

- The seller has 2 duplexes that appear identical in Columbia county between Madison and Lake Wisconsin.

- The pro forma rent is listed for $975 / month (estimated from gross income).

- Each unit is 3BR / 2BA,1200 square feet. Each unit has it's own 2 car garage.

- Taxes in 2015 were $5500.

- All utilities are paid by tenants.

- The seller has up to 10 more units available in nearby towns between Madison and Lake Wisconsin including an 8-unit and another 2-unit. Maybe a better deal could be made by buying more units from the same seller?

- Each duplex is offered at $225,000. I ran the BP Rental Calculator with the assumptions:

Vacancy: 10%

Repairs & Maintenance: 10%

Capital Expenditures: 10%

Property Management Fee: 10%

Annual Income / PV / Expenses Growth: 0%

Sales Expenses: 0%

Having never bought a unit, I could definitely use any insights into the assumptions for this area. What would you change? Thanks in advance!

[Frank Eimiller]

Do you plan on living in the duplex?
This does not look like a deal. I can't see the numbers you entered but I do see the 2% COC return and 80$ cash flow which is NOT good