All Forum Posts by: Garth Gissel

I think your vacancy rate is a bit conservative. I use 8.3%. Or one month per year per door. also I think your cost to maintain is a little high too. If these units are only 10 years old they should be in pretty good shape and easy keepers. i have 100 yr old single family homes that don't take that much upkeep. I do the work myself when work needs to be done though. Point being I think your ROI could be higher then your figures. And as Curt basically said, the first one is the hardest.

My wife and I just purchased our first duplex last Sept. Our area is not on fire economically. We inherited one renter and had to get another. This unit is 30 yrs old and in good shape. Even thought we financed it we are positive cash flow $475 per month. Add tax benefits, Add equity, and hopefully some long term appreciation and I will take that all day long. 

Good Luck and I hope you go for it.

Ditto on the insurance policy. Very high.

General Contractor I believe.

Hi Mike. I am interested to know if this deal came together for you. I am located just over the Blues from you. I live on highway 204 and work in Walla Walla.

Thanks Joe. How does the actual cost of acquisition figure in? Same example as above, say you get into this for 56K now you are looking at 21,600/56000=38% return on investment? Isnt that a valid way to look at a a purchase?

This is absolutely unbelievable. Makes me thankful for every rent check that I have got. Keep on Will.

Is this a correctly figured Cap Rate?

Gross annual rental reciepts- 28,200

Annual Taxes insurance -         3,720

Vacancy                                    2,800

NOI - 21,680 / 284,000 (Value)= 7.6% CapRate

Did I miss anything or offbase anywhere?