Analysis on Duplex for Sale in Richardson - Cash Flow of Day

With the slow down in Real Estate related to the current health situation, I thought this would be an opportunity to evaluate a property that is currently for sale and do a Cash Flow analysis. I will try to do this once a day and properties that I have visited (exteriors at least).

These are not my listings and won't list a specific address. They are currently Active when this post goes live. My numbers for analysis on tax, insurance and maintenance are approximate. I use the Investment Calculator on the GoodMortage website (I have no affiliation with good mortgage, just like the calculator).

DUPLEX FOR SALE in Richardson

Location is East of 75 near well trafficked streets. This area traditionally has rented well and has experienced rent increases at a steady rate the last 5 years.

Asking price of $400,000

Each unit is 4 beds, 2.5 baths (great unit sizes)

Gross Monthly Rent is $1,600 & $1,7000 - $3,300 total (these are market rents)

Tenants pay all utilities and take care of yard.

Taxes (based on $400,000 asking price) - $10,000

Insurance - $1,500

Maintenance - $200 per month (larger units would have more work. This won't be spent every month but a good amount for budget).

20% Downpayment of $80,000

I don't include property management as I feel with technology and the amount of subcontractors/handy men/MLS marketing services, you can facilitate the management yourself. If you would like to include, add 10% of rent.

Based on above #'s, this comes out to annual Cash Flow of $5,084 ($423/month). Analysis: This falls into the range of typical cash flow for a duplex in a Class B/C range for DFW. I typically see $400-$500 cash flow on a duplex. Yes, you can cash flow better in Class C-/D areas but the tenant turnover is much higher and who knows when those areas will turn.

With this property being in Richardson and solid location near large roads/highways, this property is priced CORRECTLY....

I have 15 years experience working on investment property transactions. If you need a broker to represent you as a buyer or seller, please consider using me........ Also, need to sell a property? Ask about Full Service 1% program (not 3% listing fee)....... OR $150 MLS Posting program on for sale or for rent properties - Ideal for Investors that understand contracts and just want the exposure.

Let me know any questions.....









Cash Flow, investment property, duplex, 4-plex, multi-family, apartments, four plex, cash on cash, cap rate