/biz/ - Business & Finance

>>2917863
>>2917867
>>2918040
>>2918112
>>2918993
>>2919100
>>2919167

Here's the financial analysis (and a pic of 4 of the units). I'm going to make more than $2.5K a month, I am just being ultra conservative with the numbers. Most likely I will net about $4K a month, and that's before I raise the rents (the previous owner hasn't raised it in years).

[Address Redacted] (8 Units) Built in 1998, annual income of $61,440. 2 bed/1.5 bath ($600)
[Address Redacted] (12 Units) Built in 2008, annual income of $92,160. Units 1-8 are 2 bed/2.5 bath ($700), 9-12 are 1 bed/1 bath ($600)
Total Units: 20
Total Income (Rents): $153,600

Expenses (Annual)
Cleaning: $1,550 + $2,325 = $3,875
Repairs: $1,180 + $1,770 = $2,950
Taxes (County only): $4,000 + $6,000 = $10,000
Utilities: $2,022 + $3,034 = $5,056
Insurance $2,220+$2,220 = $4,440
+Annual CapEx fund ($30/month per unit) = $7,200
+Average Vacancy rate (3%) = $4,608
+Property Management fee (5%) = $7,680
Total Expenses: $45,809

__________________________________________________________________
NOI: $107,791
Purchase Price: $1,300,000
Cap Rate: 8.29%
DSCR: 1.31

Annual financing: $81,994.68 Based on the following terms: $1,170,000 @ 4.99%, 25 year amortization w/ 7 year term = monthly payment of $6,832.89.

Cashflow: $25,796.32/year, 2,149.69/month, $107.48/unit.
My personal expenses:
$120,000 down payment + $10,000 earnest money
$1,200 inspection
Lien on office building (purchased for $150,000 in 2015).

Cash on cash return: 19.66%

At 20% vacancy (4 units) you would still break even.