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Updated over 8 years ago, 06/30/2016
Can someone please double check my numbers??
So I just recently ran across three apartment buildings in a low income area not too far from where I live. I did a quick number crunch and it looks like it would have pretty good cash flow. Im pretty new to the investment world, so if someone wouldn't mind checking my numbers and tell me if I'm missing something, I would really appreciate it.
#1 - Asking price is 335k
7- units renting around 575/month
Property tax is 5000
Ball parking insurance at 100/month
#2 - asking 285k
7- units at 575
Property tax is 4000
Insurance at 100
#3 - asking 275k
6- units at 575
Property tax is 4000
Insurance at 100
$11,500 gross income
-
$4800 P&I (895k @ 5%)
$1085 for taxes
$300 insurance
$575 maintenance (5%)
$1150 vacancy loss (10%)
$920 property management (8%)
=$2670 Cash Flow/ month