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Updated almost 10 years ago,
Numbers like good but nervous as it's my 1st property .. just do it?
How long did it take you to get over your fears and doubts and just go for it?
Scenario:
$150000 for 6 1bed 1bath units (3 duplexes). Monthly rental income is $2400, w/ 50% rule NOI is 1200/mo, 20% down 15yr mortgage is $834/mo so cash flow is $366/mo, ROI is 15%, cap rate is 10%, 1-2% rule is 1.6%. To me this looks good. Planning to buy and hold. Area is decent, no deferred maintenance, have property manager, all units fully occupied.
I've got enough cash to do 3-5 deals like this. Does this look reasonable, or would the BP gurus suggest I instead look to put the whole sum in one larger complex?
Thanks in advance, you guys are the best :)