[Calc Review] Help me analyze this deal

6 Replies

@Donald Kellogg Your expenses are low. I use 8% vacancy,5% repairs, and 10% capex. Example of capex. You have 3 roofs. Say $6000 each to replace. $18000/25 year life span/12 months in a year=$60 per month. Flooring 800 sf per unit = 4800 sf. If I replace it with lvp it is around $6 sf= $28800/10 year life span/12 months in a year=$240 per month. Two capex items exceed your capex and repair budget. Don't forget appliances and hot water heaters 12 year life span, havc 20 year life span, minor kitchen and bathroom remodel 15 year life span, etc. PM of 6% is unrealistic. More like 10% when you add fees. Garbage for 6 units $100 per month, maybe where you live. You will get better cash flow using 30 year amortization. The tenants job is to make the mortgage payments.

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@Tim Herman thank you for the feedback sir. I just started having interest in out of state purchases, mid west seems a bit more profitable than Arizona with the research I’ve done so far. Purchases will be made with a SD 401K. Have a great thanksgiving!