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Updated about 7 years ago,

User Stats

11
Posts
4
Votes
Hurricane Hamilton
  • Rental Property Investor
  • New York, NY
4
Votes |
11
Posts

Buying an 8-plex with low rents

Hurricane Hamilton
  • Rental Property Investor
  • New York, NY
Posted

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!

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