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Updated almost 8 years ago on . Most recent reply

User Stats

240
Posts
130
Votes
Joshua Feit
  • Atlanta, GA
130
Votes |
240
Posts

Will this property ever round a bend?

Joshua Feit
  • Atlanta, GA
Posted

BP!

I have a quad -- have had it for three years. On paper, it looks like it's going to cash-flow, but it doesn't.

I bought it for $73,500, put 25% down, and financed the rest.

Rents are a total of $1,900 (475x4). Tenants pay utilities. I budgeted: 

700 for mortgage (PITI)
190 (10%) management
190 (10%) vacancy
190 (10%) repairs
190 (10%) CapEx savings
100 for lawn service. 

That's $1,560 a month for all expenses, including the mortgage all-in. So that should show a net of $340 a month.

It's an older property, and it keeps having maintenance requests. Nothing major, but enough that I am either just breaking even or losing a little every month.

QUESTIONS:

1) Eventually, once I have fixed most things, will this property ever start making monthly cash? Or with an older property like this, are there ALWAYS more maintenance requests than I anticipated?

2) If I am generally breaking even on this property after paying the mortgage, is this a keeper? Or does the string of maintenance requests make this one a DOG?

Grateful for your perspective!

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