Deal Analysis advice
Analyzing a deal right now and wanted to get some input. The numbers are estimated to be accurate. This is a 4-plex that I am quite interested in in South Baton Rouge, LA. Anything that seems to be missing? Just keep checking and triple checking because cashflow seems pretty high. Property reported to be in good shape and fully occupied. All units renovated within the last 3 years. Just needs a new roof. Estimated to cost $5,000-$6,000.
Purchase Price $205,000 asking and current market value
Closing Costs ~$7,000
20% Down Payment $41,000
Total Cash Needed $48,000
Financed Amount $157,000
Mortgage Mo $772.35
Property Taxes Mo $208
Property Ins Mo $208
Lawn Care Mo $87.50
Management Mo $260
Vacancy Mo $78
Maintenance Mo $167
Total Monthly $1,780.85
Monthly Rent $2,600
Monthly Cash Flow $819.15
Cap Rate 9.3%
IRR 20.74% (this is the return on your initial investment)