Updated almost 5 years ago on . Most recent reply
Potential First Property - Help with Analysis
Hi All!
I've been posting a bit here and there but mainly sitting back and learning from all of you on this site while I've been in the education phase. I'm finally about ready to make the jump into real estate investing and would love to have a few extra sets of eyes on my analysis to see what you guys think about this property I found.
Property Type: Duplex (Top/Bottom)
Total Monthly Rental Income: $1,050
Top tenant is a 15 year tenant
Bottom tenant is shorter term but has been said to keep the bottom apartment spotless and is a great tenant
Purchase Price: $75,000
Rehab money: $5-10k (with existing tenants, will be hard to rehab but my realtor said after repair value isn't much higher than current asking price of $75k, so I can set this aside for roof,water heater, big cap ex expenses on top of my monthly amounts I set aside)
Insurance: $125/month
Taxes: $122/month
Vacancy: 5%
Cap Ex: 10%
Property Management: 10%
After everything above, looks like it'll cash flow $145/month at 6.64% CoC return. At $65k purchase price, CoC ROI goes to 10.62%.
Including link to the report if you guys care to check it out in a more organized format. Thanks so much in advance, looking to get your feedback and motivation to make the dive in if this property makes sense at a particular purchase price point.
Most Popular Reply
Area seems good then, I would say get a feeler on price but start lower than 75.
- Caleb Brown