Deal Analysis Multi Family (Noob)
Hello Everyone, Doing a lot of deal analysis for practice. Cranking out a few a night. Getting close to my first deal. Came across this 6 unit multifamily (all 2 bed, 1 bath) in a B class neighborhood. Its in a nice area and seems to be in great shape. Going to look at it this weekend. 2 of 6 apartments are leased until Dec. The rest are TAW. I'm sure I missed something or provided unrealistic estimates. I would really appreciate your feedback.
=====The Damage======
List Price: 475,000
Ask Price: 435,000 (30 year, 20% down, 4.3%)
Down: 87,000
Closing: 4,000
Repairs: 2,000
=====Monthly Expenses=====
P&I: 1,722 Vacancy: 300 (5%)
Taxes: 710 Cap/Rep: 600 (10%)
Insur.: 441 Waters: 250
Mgmt: 600 Elec: 89
Gas: 89
Total: 4801.15
=====Dat Rent=====
6 units, 2 bed 1 bath, $1000 each (Conservative for the area)
Total: $6000
=====The Numbers=====
CashFlow: 1198.85 (199 a door)
CashOnCash: 15.47%
Cap: 8.06%
2%Rule: 1.36%