All Forum Posts by: Account Closed

I don't know much, but I do know this; the American entrepreneurs are far smarter than American legislators, and will quite easily figure out how to stay in business.

I've been nothing but a smart-*** in this thread, and while I relish that role, I realize I should have answered the original question.
Yes, there is a lot worth fighting for.
I would gladly fight for mine, my family's, and my friends' safety, security, and liberties. Myself and my loved ones come before all else. Screw the "one world," the "part of something bigger than yourself" propaganda that has been used by both Communists and Neo-conservatives. I do love the USA because compared to most of the world, the government is far less intrusive, despite everything Bush Jr and Obama have supposedly done (but didn't really) to take away our rights. By no means perfect but having seen several other countries, and having close relatives living in 3rd world holes, I'll gladly live here over anywhere else. I also think that the majority of Americans would in fact fight if their rights were really under attack.

I love threads in which people who aren't ever going to rise up and do anything about anything argue about anything and everything.

And GM was doing so well in its last years under silver-spooner MBA control.

You ever seen the Danish women? You'd be happy as hell to live there, taxes or no taxes.

You gotta FIGHT
for the RIGHT
to PAAAAAAAARRRRRTAAAY.

FWIW, the first thing I noticed is that although they are month to month leases, the rents are a bit under the average (based on what I have seen, the seller's calculation of the average is spot-on), but I would think an owner should charge a premium for a month-to-month.
Also noticed only $1k for maintenance and repair. Sounds optimistic.
Oh, and the property is in MN where it is common for property owners to pay for heat.

Have found a property, 8 units, for sale in an area I know well. These are the numbers offered up by the seller.
I'm a complete newbie and am hoping some of you with experience can offer your impression of the numbers and whether this would be worth looking at, or if not, at what price would it make sense?

8 Unit Apartment
(Accurate as of 3/1/09)

The 7 two bedroom units are at $695/mo and the efficiency unit is at $525/mo.

** All tenants are on month - month leases.

** The average rents for 2 bedroom units in the area is $733/mo.

This property is available at only $499,000.

It is the lowest priced apartment per unit in the area.
Annual Income:
Gross Scheduled Income $64,680
Vacancy (5%) $3,234
Other Income $1,200
Gross Operating Income $62,646

Annual Operating Expenses
Property Taxes $6,670
Insurance $1,822
Property Management $0
Maintenance & Repair $1,000
Utilities $5,950
Services $4,280
Other $1,000
Annual Operating Expenses $20,722

Net Operating Income
Gross Operating Income $62,646
Annual Operating Expenses $20,722
Net Operating Income $41,924

Annual Cash Flow Before Tax
Net Operating Income $41,924
Annual Debt Service $34,818
Cash Flow Before Tax $7,105

Initial Investment
Down Payment (25%) $124,750
Closing Costs (3%) $14,970
Total Investment $139,720

Proposed Financing
1st Mortgage $374,250
Interest rate 7%
Amortized over 20 years

Cap Rate 8.4%