Updated over 4 years ago on . Most recent reply
Help me review my deal
I found a "deal" on the MLS the other day and ran the numbers. Let me provide some context:
Duplex
Each unit is a 2bd 1.5 ba
Currently rented for $850 & $900
The current asking price on the property is $235k, might be able to get it a bit lower since the current owner is selling 6 duplex's.
The rent could also probably be lifted to $950/$1000 per unit, given the details on Zillow and Rentometer but I just went with the numbers mentioned on the MLS for rents.
Here's my report: https://www.biggerpockets.com/...
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Jan Schwoebel, as with most people filling out these calculators, it is near impossible to tell you one way or another.
Did you run what your tax bill will be each year based on your purchase price?
Did you get a quote from your insurance agent for this property?
The vacancy seems fine, but I don't know what area of Raleigh this is in. I will assume 5% is fine.
Repairs reserve seems light to me. You have two sets of appliances, 4 toilets, 4 sinks, 2 tubs/showers, etc. But beyond this, it is the turn over cost that will make the biggest difference. Wear and tear is a fairly subjective term, so I would not assume you are getting a tenant to pay for much of anything at turnover. Therefore, what condition is the carpet/hardwoods? Will the units need a full repaint, or are touchups fine? Who is doing the landscaping? Is trash included in property tax bill? Is there seperate utility meters (gas, electric, water) for each tenant? Can you bill these back to tenants if you chose?
Then into CAPEX: I always recommend you get the age/condition of literally EVERYTHING. Roof, chimneys, windows, siding, storm windows, screens, kitchen cabinets, appliances, flooring, garage door and opener, HVAC, water heaters, etc.
How long do you plan to hold the asset? Anything that needs handled in that hold period will need accounted for and budgeted for. Anything that is coming up just past your hold (i.e. a roof with 7-10 years left today, and you anticipate owning 5 yrs) will likely be a buyer credit upon sale.