Can I get some help analyzing this deal to see if it is a deal. This is the info that I got.Apartment Analysis 481 Edmund
Bedrooms Rent
Unit 1 1 $550.00
Unit 2 1 $550.00
Unit 3 3 $995.00
Unit 4 3 $995.00
Parking $50.00
Total Rent $3,140.00 $37,680.00
Price $169,000.00
Operating Expenses
Gas $0.00 Water/Trash $150.00 Insurance $200.00
RE Taxes $455.00 Electric $25.00 Misc $25.00
Total $855.00
Closing Costs $5,000.00
Gross Income $3,140.00
Operating Expenses $855.00
NOI $2,285.00 $27,420.00
Debt Service $812.92
Cash Flow $1,472.08
Thanks upfront for any thoughts on this
To further analyze the deal. How much down payment on loan??? Terms??? We can use avg interest rate of 6.5% but can be higher.
Also are all units occupied? What is MISC for $25. What is lawn care cost? Snow removal cost for winter months? Does it snow often? Estimated there? Advertising? Are tenants longterm or month to month?? Vacancy factor? Legal? Accounting?
Add in the fees, but of course some are the extra’s but downpayment and terms are really important to know…
You want to cashflow at least $200 per door in my opinion, so if you make $800 that is good deal after expenses. But we have extra…So if you can clear $1400-1600 a month after debt service of loan, you have a solid buy.
Just goto a payment calculator to get payment with terms and downpayment
Here is how I would analyze this deal:
Gross rents: $3,140
Operating expenses (50% Rule): $1,570
NOI: $1,570
Mortgage (30 yr, 7% NOO, $169K): $1,124
Cash flow: $446 per month or $112 per unit per month (good)
From a numbers standpoint, this is a good deal.
Mike