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Updated over 7 years ago,

User Stats

72
Posts
19
Votes
Andrew Michaud
  • Bangor, ME
19
Votes |
72
Posts

3 unit for 60k. 7k annual profit. Worthwhile investment?

Andrew Michaud
  • Bangor, ME
Posted

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!

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