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Updated almost 8 years ago,
What do you think of this deal?
Hi Guys,
I'm about to go into contract on a property, and want a second pair of eyes on this deal:
The property is a duplex in Oakland CA in the San Antonio park Neighborhood in the 94606 zip code. One unit is a 3/1 the other unit is a 2/1.
I offered $546,000 with a 10K credit from the selller. My total loan amount is 536,110.
I'm using an FHA loan, and the mortgage breakdown looks like this:
Mortgage | $3,938.97 |
Principle & Interest | $2,669.67 |
PMI | $468.65 |
Property Tax | $650.65 |
Fire Insurance | 150 |
I'm estimating $2,000 in rent from the 2/1 unit and I would live in the 3/1 unit with 2 rooms mates. Room mates would pay $800/month each. So total income when I live in it is 3600.
Other expenses look like this:
Property Management 11% | $550.00 |
Vacancy 5% | $250.00 |
Repairs 5% | $250.00 |
Total Monthly Mortgage + Expenses+ Utilities | $5,308.97 |
I would have the tenants pay Electric and Gas. I would pay water and trash.
I would also plan to move out in 1-2 years. When I move out, I'm projecting being able to get $3,000 a month for a 3 bedroom unit.
Another opportunity I have, because of how the property is laid out, is to convert a storage room into a studio or 1 bedroom unit. And I can get extra income from that.
-Danny