Columbia Heights (Minneapolis) MN Househack Analysis

9 Replies

PROPERTY INFO
Property Address 4506 Fillmore St NE, Columbia Heights 55421
MLS# 5540705
Number of Units (Duplex, Triplex, 4plex) 2
Crime Rating (Low/Medium/High) Low
Property Listing Price $ 315,000.00
Rehab Needed? (None/Light/Medium/Heavy/Full) None
Square Footage 2,900
Rehab Price/Square Foot (Refer to Key on Right) $ -
Total Rehab Estimate $ -
Total Cost (Purchase + Rehab) $ 315,000.00
MINIMUM Down Payment Required for Purchase $ 15,750.00
Conventional Loan Amount (Total - Down payment) $ 299,250.00
FULL OCCUPANCY CASH FLOW
Est. Monthly Rent (using www.myrentrates.com) $ 3,200.00 (from listing)
1% Rule (Rent should be 1% of Purchase + Rehab) $ 3,150.00
Does this PASS the 1% Rule? YES
Est. Monthly Payment (PITI + PMI) - Mortg. Calculator $ 2,060.12
Est. Monthly OpEx (PITI + PMI + Utilities + Reserves) $ 2,948.12
Est. Monthly Cash flow (Rent - OpEx) $ 251.88
CoCRoI 19.2%



HOUSEHACKING CASH FLOW
Est. Monthly Rents $ 2,666.67
1% Rule $ 3,150.00
Does this PASS the 1% Rule? NO
Est. Monthly Payment $ 2,060.12
Est. Monthly OpEx $ 2,948.12
Est. Monthly Cash flow $ (161.45)
CoCRoI -12.3%

ASSUMPTIONS

Utilities (Varies by Property)
Electricity
Water & Sewer 100.00
Garbage 60.00
Shoveling/Lawn Care 120
Total $ 280.00
Reserves
Vacancy (%) 5.00% $ 160.00
Repairs & Maintenance (%) 7.00% $ 224.00
CapEx (%) 7.00% $ 224.00
Management Fees (%) $ -
Total $ 608.00


Minneapolis Househackers, would live your feedback on this analysis.

I feel pretty good about this one. Rents of ~$1600 per side seem reasonable for this area (per MyRentRates.com and the listing).

Each unit has 3br/1ba.

If you are familiar with the area, I hope you'll let me know how I can tweak my analysis to make it more accurate.

AJ

Originally posted by @James Hamling :

3 words: Debt Coverage Ratio....

 

Thanks for the feedback James.

For my future reference, what would a good deal look like in your estimation? 

Is there a specific cash flow number? Equity number? DCR?

I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.

Thanks for your time,

AJ Smith



Originally posted by @AJ Smith :
Originally posted by @James Hamling:

3 words: Debt Coverage Ratio....

 

Thanks for the feedback James.

For my future reference, what would a good deal look like in your estimation? 

Is there a specific cash flow number? Equity number? DCR?

I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.

Thanks for your time,

AJ Smith



A good deal would look something like this https://www.biggerpockets.com/...






















 

no problem! It might make sense for you to pay for access to Rentometer or something similar, you can get basic access for a year for a pretty reasonable price. I personally like to check a few different places to come up with a suitable average.