Duplex Deal Analysis Spreadsheet Help

6 Replies

Thank you in advance to anyone who provides help and insight.

I am relativity new the the real estate world and and hoping I can have some help determining the accuracy of the spreadsheet I have put together. The spreadsheet can be accessed in the link below. I decided to create a simple multifamily deal analysis spreadsheet in lieu of using the Bigger Pockets calculator in hopes to better understand how the "numbers" work.

The deal that is currently populated in to the spreadsheet is not real. My main concern right now is checking the accuracy of the spreadsheet and calculations. Any suggestions on how I can correct or improve this spreadsheet would be appreciated.

I am based out of CT and plan to purchase my first owner occupied duplex using a FHA or Freddie Mac HomeReady loan in the near future.

https://www.dropbox.com/scl/fi...

Hi @Stephen Sobota . Welcome to BP. What part of CT are you considering? Also, since you're house hacking you should run the numbers both as owner-occupied and after you move out.

I took a look at your spreadsheet. Here are my suggestions:

  • Don't use a % of purchase price for your closing costs. It's way to inaccurate. No way you'd have $8k on a $160k purchase. Talk with local lenders to get a more realistic idea.
  • Always include a budget for initial repairs. There's going to be something!
  • I think it's better to use a formula for PMI. Your lender will tell you what percentage of the loan amount you'll be charged.
  • 20% combined for Repairs and CapEx is high. I use 15% each, but do adjust based on the property.
  • Always underwrite with Management, even if you plan to self-manage at first.
  • Break out utilities. At the very least you'll have water/sewer. I use $30-40/unit/month.
  • You will almost certainly have some expenses for lawn care and snow removal.
  • Advertising will cost something. You can use your vacancy rate and the cost so posting to Zillow/Craigslist/etc. to figure that out.

@Stephen Sobota I love new Britain right now. A lot if my investors are looking that way.

Personally I like to be closer to 1.5% instead of 1% rule. 1.3 is pretty much the going rate from what I've seen recently though.

Also check out Meriden too.

I would also add that you should ask for closing costs back from the seller. This may drive up your purchase price but you'll have less out of pocket and with such low interest rates, I think you're better off saving more for your next purchase

@Stephen Sobota not all closing costs but a good portion of them.

The reduction in cash flow is minimum. 5k is like 20 bucks a month right now. Having 5k more on hand imo is worth so much more.

Also, if you seriously want to become a bigger investor, stay away from the 2 families for your first. Too many eggs in 2 baskets.

If you'd like to have that full convo, reach out to me. Just too much to type right now. Way easier to talk on the phone or meet

@Stephen Sobota typically the seller concessions are capped. That way the seller has an idea on how much they will get back in a net return. Might be a tough sell for "seller to cover all closing" as language, especially if it's a in a multi offer situation.

You’re on the right track.  All of those towns have good returns.  You’ll find your deal sooner or later, house hack is definitely the way to go out of the gate.