Does this multi-family straight off the MLS appear to cash flow?

2 Replies

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

OK- I ran it through the BP calculators, and got basically the same thing- so I guess I am doing it correctly- I'm not yet a premium member so I can't save the reports and share.  I just assumed that since I was above the 1% rule, that it should at least cash flow a little.  A 275K property with 3,100 in rent seems like I must be using wrong numbers somewhere- but I keep coming up with negative cash flow with these numbers.  I'm guessing the taxes are the thing keeping it from generating?  Or am maybe just that they don't have the renters pay any utilities...

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