Am I missing anything in this duplex analysis?

6 Replies

Hi everyone,

I recently came across this property and ran the numbers on it. The CoC return and monthly cashflow exceed my criteria so it seems like this really could be a great deal. Both units have separate utilities and tenants pay their own electric & gas utilities. I ran the numbers conservatively as you'll see. Am I missing anything? I haven't been able to walk through the property so it's possible it may need significant repairs... Assuming it doesn't though, would you go for this deal?

Property Taxes? I would likely go a little more on capex also. Either way, if those are true rents it will still cash flow nicely.

@Dan Turkel

Based on the numbers it looks good. I guess your deal breaker based on this analysis would be the condition of the property. All the best to you...

Jorge

Originally posted by @Joe Ferguson :

Property Taxes? I would likely go a little more on capex also. Either way, if those are true rents it will still cash flow nicely.

 Wow, I feel dumb. I have no idea how I skipped the property taxes. This very significant expense completely changes the deal. Good eye!

Check it out

@Jorge Ruiz

Thanks Jorge... turns out I forgot to include taxes >.< definitely changes the deal by quite a bit!

@Dan Turkel Looks like a good deal even when property taxes are added in...if you can net around $200/door then definitely a good deal and it hits the 1% rule.

If this requires minor rehab then it is worth pursuing but there will be other factors such as current tenants (or maybe it's vacant) and attaining your projected rents.

@Dan Turkel That's what we are here for! It has to still cash flow 200 per door. Looks pretty good to me as long as there are no big surprises. 

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