help me build confidence in my analysis
Im new to multifamily and looking for one on the west coast. Found this is Boise and ran some numbers. Please help me confirm that this is a bad deal. My logic says that its inexpensive for local duplexes on the RMLS for a duplex and there are multiple offers already, but why? it doesnt seem to pencil out for me. Are my reserves too high? rents cant go up too much more currently. it appears to be turn key. with some outdated appliances but functional.
asking/offer price 245k/250k
actual mo income 1550. (775 per side, 850 might be possible)
EXPENSES
mortgage 1100
taxes 258.3333333
ALLOWANCES/Reserves
vacancy 110
maintence 110
managment 110
capex 110
annual expense 20260
annual income 18600
cap rate -0.00664
noi 18600
why is someone even making an offer on this? or am I way off in my evaluation
thanks for you insight