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Updated about 7 years ago,
Buying an 8-plex with low rents
This 8-plex is in an area where studio/1br apartments rent conservatively for $325 per month.
Zillow listing:
https://www.zillow.com/homedetails/1318-N-18th-St-...
Listing price: $119,000
Income:
Estimated Annual Rents: 8*$325*12= $31,200
Less 10% vacancy: $28,080
Expenses:
Taxes: $2285
Insurance: $2000
Management (10%): $3120
Maintenance (10%): $3120
CapEx (10%): $3120
Debt service: $6133 (30yr for $95,200 @ 5%) (20% down)
Total expenses: $19,777
Net Income: $8302
Per door per month: $86
I already own a duplex and a SFH in the area, and I want to diversify my income sources by investing in apartments. I want to buy and hold for rental income: Does this apartment complex seem like it would further that goals, or is there something I'm missing?
Thank you in advance for all opinions and advice!