help analyzing hypothetical deal
Newbie here still practicing deal analysis before making the plunge. Any number junkies care to see how well I'm doing with the below analysis? It's for buying land and building a triplex on it. Tenant pays all utilities. (These are researched costs; I didn't just pull the numbers out of thin air.) Would really appreciate constructive feedback to improve my skills :)
Side question: does the number in an R-zoning refer to the number of dwellings allowed per acre? I've found conflicting info on this and would like clarification. TIA!
| Construction | 216200 |
| Land Site Development | 86000 50000 |
| Closing costs | 6516 |
| TOTAL COST: | 358716 |
| 20% down pymt | 71743 |
| Financed amt | 286973 |
| Monthly Expenses: | |
| HOA/misc | 100 |
| Taxes | 358 |
| Insurance | 150 |
| Mortgage | 1721 |
| Vacancy | 420 |
| Prop mgmt | 420 |
| Repairs/Maint | 294 |
| CapEx | 420 |
| Total mo expenses | 3883 |
| Income: | |
| Rent 3/2 Rent 3/2 | 1675 1675 |
| RENT 1/1 | 850 |
| Total mo income | 4200 |
| Cash flow mo: | 317 |
| cash-on-cash: | 5.3% |