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Updated over 7 years ago,
Do these income/expense numbers work for this 3 unit multifamily?
3 unit multi-family. Appraisal value 90k, selling price 70k. 15 year mortgage at 4.5%. Down payment 20% or 14k. Annual mortgage cost $6300.
Rents:
2 bed $600/mo tenant pays electric and heat
1 bed $550/mo tenant pays electric
1 bed efficiency $400/mo tenant pays electric and heat
Annual income $18600
Expenses:
Heat $850
Trash $300
Water/Sewer $1100
Taxes $1900
Insurance $700
Mortgage $6300
Total expenses before repairs/vacancy = $10850
End of year profit would be $7750. Lets take potential vacancy and repairs into consideration.. that would leave me with lets say $5000. Would this be a decent number to make it worthwhile on this property? A big chunk of expenses are coming from my mortgage which I would shoot to pay off the loan asap from other sources of income but disregarding that factor, I am curious if that is a worthwhile number on a 3 unit building. Thanks!