I was hoping I could run some of the numbers and details on a rental property I will be settling on in June. It is a little unique to the properties you own, but I think the basic principles you have laid out and I believe in are followed. The details are as follows:
Purchase Price - 459k; All closing costs paid for by seller
Down Payment - 20%- 92k
Multi Family Unit - Duplex. Unit 1 - 3 Bedrooms 2.5 bathrooms. Unit 2 - 3 Bedrooms 3 Bathrooms.
Brand New Construction - Very Modern, no need to invest additional money and all appliances come with the units, Roof has 10 year warranty, and standard 1 Year Builder Warranty on everything.
Mortgage/Taxes/Insurance Per Month - 1900 (The property has a tax abatement for 10 years so the taxes are less than 200 a year)
Rent Roll - Unit 1 - 1600-1800 Unit 2 - 1900-2100
So my cash on cash return is around 21%-26% and the cap rate is around 9%-10%. Wanted to gauge peoples thoughts on this property and if they would pull the trigger if they had the cash to put down 92k. Thanks and I appreciate all feedback.