Updated almost 8 years ago on . Most recent reply
Analyze this duplex with me in
Here is potentially my 3rd investment property purchase. A duplex that is currently rented.
Price $83,000
Rents $575x 2 = $1150
Down payment = $20,750
Inspection = $450
Appraisal = $450
Title =$1200
Insurance = $1100
Loan Org. = $1000
Seller concessions = $1500
Total all in = $23,450
Monthly costs
Management = $115
Cap Ex = $100
Repairs = $50
Taxes = $107.5 $1290/year
Insurance = $92. $1100/year
Vacancy = $92
Principle & Interest = $340
Total monthly costs = $896.50
Cash flow = $1150-896.5= $253.50
Per unit cash flow = $126.75
Cash on Cash return = $253.50x12 / $23,450 = 13%
Cap Rate = $7122/$83,000. = 8.6%
Would you take this deal?
Thanks for your comments or questions!
Most Popular Reply
For me if its Blue collar I need higher returns, Those returns dont wow me and the COCROI just barely hits past 12% the cap ex should contribute to more monthly at 8 and with me 10% because there are always things bound to happen. For me the numbers on This return would fit more favorable with white collar cities because I would be able to landlord on autopilot or less hassle free than blue collar towns in rural areas where if one loses a tenant it may be months of vacancy which will eat up profits in no time. For me its gotta be higher COCROI and a better return off 20k especially if not in a attractable city.