3 Unit Deal

[Doug Pearson]

This would be my very first one, yikes!

They want $220K. 3 units, tow rented for $725 a month and one for $825 a month. Renters pay all utilities. I would put 20% down. College town the next town over, so the rental history is pretty solid.

What else should I look for? (Mortgages and other gotchas!)

Thanks to anyone who wants to chime in.

[Jon Holdman]

You need to get them down more than a little on price.

Rent: $2275
Expenses: $1137 (read sticky threads in Rental Property forum)
NOI: $1137
Payment: $1055 ($176K, 6%, 30 years)
Cash flow: $82/month, $987/year
Cash on cash return 2.2%