We're looking to add a duplex to our investments. Here's the breakdown for the unit:
Original Purchase price: $135,000 (we plan to offer lower so this would be the high end)
Original Mortgage Amount: $101,250
Interest Rate: 4%
Mortgage Term: 30yr
Gross Rents: $1,700 ($850 per unit)
Principal and Interest: $483
Taxes and Insurance: $408
Vacancy (7% standard rate for our area): $119
Maintenance(using 5% rate): $85
Prop Mgmt: $170
Cash Flow: $435
Cap Rate: 11.95% - using (
http://www.proapod.com/calculator/free/o_cap.php)
The unit is actually in good shape so we don't anticipate any big expenses popping up for a while. Roof, appliances etc are all relatively new. From my above analysis it seems like a good purchase but we are relatively new to this whole real estate process so I was curious to see if I'm missing anything in my analysis.
Thanks in advance for your feedback!