The Numbers -- Simple Numbers for a Simple Property

Several people have asked how the basic numbers work for a simple two unit house.

Below is a set of numbers that I borrowed from a fellow Bigger Pocket enthusiast. Mine will be different, but we're in the ballpark for this type of property.

NOTE:  This breakdown does not talk about income from the pay-down of the mortgage principal.  This fact is very important when looking at the deal as a whole.  A simple 2 unit multi-family will rarely give you tons of cash in your pocket each month.  It's about positive cash flow, appreciation and mortgage pay-down.

List Price -- 100000

Purchase Price  --  94500

Monthly Rent  --  1350

Cash to Close  --  23900

Property Tax  --  138

Insurance  --  90

PM (not applicable to my situation)  --  133

Mortgage  --  406

Vacancy (10%)  --  133

Repairs (5%)  --  67

Total Expenses  --  967

Income - Expenses  --  383

Annual Net  --  4596

CAP Rate - Annual Net (minus mortgage)  --  9.70%