Covering the Basics on Apartments

[Tanner Barnes]

I chose Decatur due to it being away from Huntsville Madison area yet still close enough for commuting, I could see Decatur going in any direction unfortunately as far as appreciation or depreciation. I used street view and was impressed by the area. 

I'm going to link a property to use as an example, as well as my predictions for a calculator and you guys tell me what areas I may be looking pass and not considering. 

It's got 6 units about 625sqft and 1 that's about 1400sqft.

https://www.zillow.com/savedhomes/for_sale/2085910752_zpid/1_pnd/35.550105,-83.715821,31.527043,-88.884888_rect/7_zm/1_rs/1_fr/

I used this calculator to figure most things, and I tend to over guess expenses and underguess returns. I looked at the areas rentals and made my returns the lowest worst case scenario. Adding closing costs and rehab in the total cost of loan. I assumed maybe closing property at 250, 50 for rehab, 15 for closing costs. 

https://www.calculator.net/rental-property-calculator.html?cprice=350000&cuseloan=yes&cdownpayment=20&cinterest=6&cloanterm=30&cothercost=0&cneedrepair=no&crepaircost=10000&cafterrepairvalue=150000&ctax=2850&ctaxincrease=3&cinsurance=2000&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=2000&cmaintenanceincrease=3&cother=0&cotherincrease=3&crent=3000&crentincrease=2&cotherincome=0&cotherincomeincrease=0&cvacancy=10&cmanagement=10&cknowsellprice=no&cappreciation=3&csellprice=200000&cholding=30&csellcost=8&printit=0&ctype=&x=54&y=24

[Peter McDonough]

Check out these recent Huntsville threads on crummy 4 plexes.

https://www.biggerpockets.com/forums/48/topics/690022-looking-at-4-units-in-huntsville-what-do-you-think?highlight_post=4085692&page=1#p4085692

https://www.biggerpockets.com/forums/88/topics/689845-what-do-you-guys-think-of-this-4plex-deal-in-alabama?highlight_post=4075073&page=1#p4075073