[Calc Review] Help me analyze this deal

[Bashar Salah]

Hey y'all! New Pro member with you. Super excited to join the community and jump into real estate. I have a current property that is being offered to me at 225k. It's a duplex and I would live in one unit and rent the other. The other rents at 1200 but I would increase rent to 1300 immediately. The building is a bit older built in 1913 and will require many upgrades from new windows, new soffits, 5 new doors, new paint, a new bathtub/shower, fence eventually etc. Of the items that I'd need to do within the first year I would say that's about 15-20k (assuming inspector comes back with no major issues).

 I found the number to break even monthly is 170k (although doubtful the seller will approve). I'd need to go to 120k to get about $170 total cash flow. So I know this deal sucks in terms of cash flow, especially due to high taxes (7k / yr).

Really, I'd like to get thoughts on estimating capex and repair/maintenance for older and newer properties. I currently have repairs at 15% rent and capex at 20%. is that crazy high?  Also, anyone know a contractor in central/south new jersey that works with investors?

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*This link comes directly from our calculators, based on information input by the member who posted.

[Joe Sadusky]

@Bashar Salah at first glance, this property doesn't have the cash flow numbers that I like to see. 

I look for at least $400/month cash flow on my deals.  I don't get too caught up with the capex and whatnot. 

As long as I have a nice buffer and am able to put aside 15% of rent for emergencies, I feel comfortable with the investment. 

Now one other thing for you to consider... you are basing your numbers off of you essentially living in one of the units for free, correct?  What are your long term goals?  What will your numbers look like with both units rented? 

Best of luck!