Does this multi-family straight off the MLS appear to cash flow?
Originally I calculated this out assuming tenants pay utilites, but then I found out they don't have separate meters, and landlords pay electric, gas, and water. Maybe I could change this in the future- but can anyone check my numbers? Am I being too conservative with my assumptions? FYI, rents are $1,100 for unit 1, and $1,300 for unit 2 plus 7 garages fully rented at $100 a piece. There are "decent" tenants with year leases.
This is assuming full MLS price of $275K with 20% down at about 6% interest rate. This is central pennsylvania, and the stated vacancy rate online says 5.8%, but I went a little conservative- but I'm not 100% how much I should choose for CapEx for 2 apartments and 7 garages. Assume tax and insurance are accurate below- are any other numbers off?
| Price | 275000 | |
| Rent | 3100 | |
| Expenses: | ||
| Taxes | 430 | |
| Insurance | 150 | |
| Water | 56 | |
| Electric / Gas | 351 | |
| Lawn / Snow | 75 | |
| Vacancy | 210 | 7.00% |
| Property Mgmt | 248 | 8.00% |
| Capex / Maint | 310 | 10.00% |
| Total Expenses: | 1830 | |
| P & I: | 1319 | |
| Expenses + Mortgage (P/I) | 3149 | |
| Cash Flow: | -49 | |
| 12 Month Cash flow: | -588 | |
| Enter cash invested: | 60000 | |
| Cash on Cash Return: | -0.0098 |