Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated about 10 years ago on . Most recent reply

Good or Bad Deal?
I don't usually buy good quality properties that don't need work...So I'm a little hesitant.
5 unit building with 'bonus' lot of land with a very large shop/garage. Asking 234. My network and research leads me to believe he will go for 225 at the bottom
5 unit income - 2855/month,
Garage income - 300/month
Total Income - 37860/yr
Expenses (yearly, actual)
Electricity - 275
Water/sewer - 1393
Trash - 923
Insurance - 3672
Maintenance - 600 (I have a local retired guy who already takes care of my other properties on the street for 50/month including mowing and snow-blowing. He just likes to stay busy)
Taxes - 2361
Estimated Expenses:
Repairs - 1893 (5% of rent)
Vacancy - 1893 (5% of rent..but is high..most tenants have been there for more than 5+ years..One has been there for 57 years)
Management - 0 (My wife and I manage our properties. Though I could technically account for it...it's just money from one pocket to another.)
Total Expenses - 13010
NOI - 24850
Debt Service (25% down, 25 year) - 12084
Net Income - 12766
Cash on Cash return - 20.8%
Seems a little low for 5 units + the garage space...no?