Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 18 years ago,

User Stats

30
Posts
0
Votes
N/A N/A
0
Votes |
30
Posts

What if it cash flows when purchased at FMV?

N/A N/A
Posted

I have an opportunity to buy a 1472 sq. ft. 2 family at $99,900. Rent in the neighborhood is $700 per unit ($1400 per building). Comps have several absolutley identical properties on the same street each at $105,500. I have not seen the inside of the property yet, but I believe it to be in good condition. If it cash flows as shown below is it a good idea to buy at or near FMV? 100% financing per below is another hurdle I'll figure out if I decide to do this. Did I mention there are two of these side-by-side? I'm a newbie so I'm reluctant to take both. Thanks for your thoughts.

High financing estimate because I like to pad things - $110,000 @ 8%= $807
Taxes ($1500/12)=$125
Insurance ($1000/12)=$83
10% Vacancy=$140
10% Repairs/maintenance=$140

Rental income ($1400) minus expenses ($1295) = $105 positive flow

Is this too good to be true?

Loading replies...