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Updated almost 9 years ago,
Good deal...or am I missing something?
Hi Everyone,
Still adjusting to this forum...so many thread areas, I'm not sure if I am in the right one....forgive me if I'm not.
I've been looking "at the numbers" so long, I'm not sure if I'm looking at them right. I am looking at a 2 family. Here are the numbers:
Costs
Cost to buy: 130,000
Down payment: 25% (32,500)
Mortgage interest rate and payment: Let's say 3.8% to be safe. Online calculators tells me it will be around 750/mo, including the taxes.
Taxes: 3500/yr
I'm factoring 2400/yr for insurance.
Separate electric, separate water.
Only other costs I can foresee are trash, common area lights (if any), vacancy times, and general upkeep. Most of these are unknown at the time.
Income:
One unit currently rented (3BR): 1275/mo
Second Unit vacant (2BR, fully remodeled): I can probably get 1000ish (if/when I rent it out)
It's not in a busy apartment - like area, but there are certainly rentals nearby. I think I could fill the vacancy after a few months of owner occupying it (to get the conventional owner's occupied interest rate).
So let's say I can get 2375/mo. That get's me well past the 50% rule, and pretty close to the 2% rule.
I think that's all the info I have right now. My calcs tell me I walk away with ~15K a year minus those unknown costs, and a payment to uncle sam come tax time. Am I off, or does it look as good as I think it does?
Sorry for the long post...much love and appreciation for anyone that can help this new guy out... :)