First Duplex Analysis - Am I missing anything?!
Good evening. I've been a lurker on this site for about a year or so. I'm finally in a position where I feel that I can successfully purchase my first property. My plans is to buy and hold rental properties. That being said, I've found a property that I feel is a good deal (assuming I did the numbers correctly) and want to get some feedback to be sure I'm considering everything. I've used the rental property calculator through BP and it seems good. Here's what I've got....
Asking price: $124,900 (I'd like to offer less to get a better COCROI)
After repair value: $124,900
Closing costs: $4,000
Repairs: $5,000
Down payment: 20%
Interest rate: 4%
Amortization: 30 years
Annual taxes: $1,423
Income: $1,300 total monthly
Utilities: $0 (paid by tenants)
Vacancy: 5%
Repairs and maintenance: 5%
Cap ex: 5%
Property management: 10%
Annual income growth: 2%
Annual property value growth: 2%
Annual expense growth: 2%
Sales expense: 6%
Am I missing anything here? With those numbers, I get $1,300 monthly income. $920.62 monthly expenses leaving me with $379.83 monthly cashflow. I'm also seeing a 13.4% COCROI (assuming I pay the full asking price).
Please let me know if I'm missing anything. I'm pretty excited as this could be my first property to get me started in real estate and the first step towards financial freedom!