Updated over 5 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
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@Brad Haughton, I took a look at your analysis. Here are my thoughts:
- What's being done for the $15k in repairs? You shouldn't expect that such a small amount will add any value.
- There will be closing costs. ~$4k or so, probably. Talk with your lender.
- The listing is weird. It says "Two-family home with 4 units." I would be sure to confirm with the city that this is a legal 4-family.
- Bump up Repairs and CapEx a bit to 15% combined.
- I usually figure 8% Vacancy for MFR.
- You've left out Management (10%). Always include Management in your underwriting, even if you plan to self-manage at first.
- On this Trulia listing, taxes are shown at $546/month. Confirm the number with the City.
- Is water/sewer individually metered? That's pretty rare. I would expect $30-40/unit/month.
- Insurance looks pretty low for a nearly $700k property. Talk with a local insurance agent.
- What about lawn care/snow removal and admin/professional fees?
My guess is that you just barely break even or maybe squeak out <$100/month.