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Updated over 10 years ago,

User Stats

29
Posts
9
Votes
Justin J.
  • Rental Property Investor
  • Durham NC
9
Votes |
29
Posts

Deal Analysis Fitchburg Massachusetts

Justin J.
  • Rental Property Investor
  • Durham NC
Posted

Two Family up/down Multi located two blocks from Fitchburg State University, Fitchburg MA.

Top floor: 4 bedrooms/2 bath.

Bottom Floor: 3 bedrooms/2 bath.

Cannot finance it without owner occupancy, so the plan is to inhabit the bottom unit and rent out the top unit. This property was rented out the past 5 years with one year leases by the room. 2012 and 2013 rents were $500 per room, 0% vacancy. Total rent $3500/month.

165,000 purchase price, 5% down with a 30yr MassHousing conventional mortgage.

Taxes: $3850

PMI: $828/yr

Insurance: $2400

Electric: ~$1,560

Heat (oil): $6,600 (by far the biggest expense, the utilities aren't separate, there's only one thermostat/heating system for the whole house).

Vacancy: $2000/$2500

Rent is $2000 for the top unit, and an additional $500 if we rented a bedroom out in our unit.

$8,250 down

$4500 closing costs

(~$7,800 for 6 months reserves required by MassHousing)

Is this property worth it? The numbers are very close when factoring in owner occupancy, but would work out much better with renting out two units. 

I appreciate any comments/questions/statements!

-Justin

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