Asking for Assistance on a deal

[Mike S.]

Looking to buy third income property and need help analyzing it.

Property Details-Asking price $565000. (Lets say the bank doesn't budge and I buy it for this amount and seller pays closing costs).

Multi-family 2 unit 1 bed/1 bath and 4 bed/1 bath. Great location! Close to large campus/student property with great downtown.

Currently both units are rented out at $1300 for 1/1 and $2600 for 4/1.

Have been pre-approved for $575k. Using equity from other investment property for down payment and plan to pay off (down payment) within 1-2 yr.

Used a mortgage Calculator=Monthly Payment= $3600 (for Mortgage, Loc, Taxes, Ins)

Doesn't include vacancy, cap ex etc. - Utilities paid for by tenants

Property is not updated and is rented until Aug. 2017.

Property is in a great college town with multipliers around 10-12x. Average rents per bedroom $650-700; $800 when updated.

Need help analyzing the numbers to see if it would work for me in the long run. Long term buy & hold property.

Thank you in advance!

[Michael Maloney Jr.]

Mike Schmidt I understand your logic 100%. and college rentals is something I may get into in the future maybe over by east Lansing somewhere. My point to the risk is that they're a bit irresponsible for that thin of a deal I.E. Repairs and that. Thanks for getting back and and good luck!