All Forum Posts by: Mark Struckhoff

Gunnar,

Address is 5526 Milentz 63109.  2bed/1 bath units around 1000 sq ft. 

Located in South St Louis, which is a decent area, but certainly not "primo".

As I mentioned in my first post, I think the current rent is low at $650.  Area should be around $730, but I was shooting for $700/mnth.

The appealing thing to me is that there are already tenants and both have been there for over 2 years.

At what purchase price does this make more sense?

Any help on how to post a spreadsheet to size in here?

Until then, here are the numbers;

$125,000 asking price.  30 yr loan at 4.5% with 20% down.  Pmt would be $507/mnth

Taxes are $1721 annual, insurance $1110 annual.

Maintenance $1000/yr, $725 admin costs, $100 advertising, $1685 variable costs (12% of income), 10% vacancy rate

2 units renting for $650 each.

I'm looking for some feedback on the below numbers.  This would be my first rental property, and I plan on a buy and hold strategy.

Couple of things to note:

125,000 is full asking price. I think the property is worth between 110-115 based on SFR sold comps. I don't know how to value based on the fact it is a two family.

Unit is currently leased, however, average rent in the area is around $730/unit.

Unsure of any repair costs because I haven't been through property yet.

Feel free to ask any additional questions.

I have a feeling that this deal is a no go at these numbers.  At what purchase price does this deal start to make sense?

Any and all feedback would be greatly appreciated.  Thanks.