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Updated over 7 years ago,
is real estate to expensive in my local area? In Richland Wa.
Hi everyone thought I would throw out a question. I am new to the game but the numbers that i'm looking at make me think the cash flow in my local area "Richland Wa." are not very good. I have found a couple of duplexes build in the mid 40's 3/1 for around $220,000 each side rents for $750 to $850 depending on condition in b class areas. a fourplex 1/1 for $315,000 in a c- area. A single family built in the 40's 3/1 for around $160,000 and rent is around $1000 in same b area. Or a single built in the 90's 3/1.5 for around $185,000 and rents for $1200 in a b area. After 25% down and expenses i'm looking at around $1200 for mor. ins. and taxes plus cap x 5%=$80. vac 3%=$50. plus mang. 10%= $160 for a total of $1490 out of $1600 on the duplex are my numbers off somewhere or am i missing something? we also have about a 1.5% rental vacancy rate here. thanks for the help.