Updated over 5 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
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Hi @Joel S., I'm a new investor so take that into account.
Where are you getting the 5% property management fee from? My understanding is that most PM companies charge 10-12% depending on their reputation and the property itself.
How old is the property? How old are its various major components, such as roof / HVAC / plumbing and electrical systems? That will go a long way toward determining both your up-front repair costs and your ongoing repair / capex allocations. As it stands, both of those seem super-low. Very few properties have literally no repair costs. At the very least, I'd expect there to be some cost to modernize fixtures, outlets, and maybe paint touch-ups.
Your interest rate is 4.5%. Is this going to be a house hack or something? That seems like an incredible deal for a non-owner-occupant loan.
Why are you putting 30% down on this property? Is that how you're getting such a low interest rate? How does the cash-on-cash ROI % compare if you pay a higher interest and put down less money?
How many units is this property?
What is the source for your monthly income estimates?