Hello everyone! My name is George Romero I'm new to Biggerpockets and I'm sooo glad that this is available. Some advice is greatly appreciated for this deal I have under contract. It's a 7 unit MF that needs one unit touched up and painted along with a new fence with gate and I'm a bit nervous about going through with the deal. I've attached the cash flow analysis for anyone wanting to give me some advice. This is in an older part of town where rent is not very high, but I think I can bump it up to $550 for each unit.
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| [Property Description] |
| Monthly Operating Income | Scenario A | Scenario B |
| Number of Units | 7 | |
| Average Monthly Rent per Unit | 495.00 | |
| Total Rental Income | 3,465.00 |
| % Vacancy and Credit Losses | 5.00% | |
| Total Vacancy Loss | 173.25 |
| Other Monthly Income (laundry, vending, parking, etc.) | - | |
| Gross Monthly Operating Income | 3,291.75 | |
| Monthly Operating Expenses | | |
| Property Management Fees | 347.00 | |
| Repairs and Maintenance | 200.00 | |
| Real Estate Taxes | 250.00 | |
| Rental Property Insurance | 298.81 | |
| Homeowners/Property Association Fees | | |
| Replacement Reserve | 50.00 | |
| Utilities | 150.00 | |
| Advertising | | |
| Monthly Operating Expenses | 1,295.81 | |
| Net Operating Income (NOI) | | |
| Total Annual Operating Income | 39,501.00 |
| Total Annual Operating Expense | 15,549.72 |
| Annual Net Operating Income | 23,951.28 |
| Capitalization Rate and Valuation | | |
| Desired Capitalization Rate | 8.00% | |
| Property Valuation (Offer Price) | 299,391.00 |
| Actual Purchase Price | 167,500.00 | |
| Actual Capitalization Rate | 14.30% |
| Loan Information | | |
| Down Payment | 33,500.00 | |
| Loan Amount | 167,500.00 |
| Acquisition Costs and Loan Fees | 6,000.00 | |
| Length of Mortgage (years) | 15 | |
| Annual Interest Rate | 6.690% | |
| Initial Investment | 6,000.00 |
| Monthly Mortgage Payment (PI) | 1,476.66 |
| Annual Interest | 11,002.25 |
| Annual Principal | 6,717.63 |
| Total Annual Debt Service | 17,719.88 | |
| Cash Flow and ROI | | |
| Total Monthly Cash Flow (before taxes) | 519.28 | |
| Total Annual Cash Flow (before taxes) | 6,231.40 | |
| Cash on Cash Return (ROI) | 103.86% | |
