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Updated over 7 years ago,
3 unit for 60k. 7k annual profit. Worthwhile investment?
I am looking into purchasing a 3 unit building in a great location in Northern Maine. I am looking for some opinions on this deal.
3 unit building, all great tenants and fully occupied. 60k purchase price, 79k tax value.
1 bed $550/mo
1 bed $400/mo
2 bed $600/mo
Total Income before expenses $18,600
Expenses
Heat $850
Water/Sewer $1000
Property Tax $1900
Insurance $750
Trash $500
Lawn/Snow $200
Mortgage $4500
10% vacancy $1860
Repairs $1000
Total expenses $11,600
18,600-$11,600 = 7000 total profit per year. Which I estimated about $160/mo per door. Do these numbers work? Place does need a little work but not in the short term. Gives me a little room to increase value of property. I am a contractor by trade and will save thousands in repair labor. I feel like this place has a lot of potential in a few different directions. What do you guys think? Thanks!