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Updated almost 8 years ago,

User Stats

196
Posts
181
Votes
DG A.
  • San Francisco Bay Area
181
Votes |
196
Posts

What do you think of this deal?

DG A.
  • San Francisco Bay Area
Posted

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 Insurance150

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

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