Yes, it will take a long time to recover. The maintenance manager was from the previous owner and they were paying him 10% of income and he did other things around the property too. I believe he knows home improvement work as well as collect the rent. He said he goes in and do everything when the tenant moves.
Thank you for helping me out on this deal. I called the finance guy and told him that I want out of the deal because I will be losing money. I will be worst off than I started. I think the finance guy should have did his due diligence in looking at the numbers to make sure it’s good cash flow. days prior, I put a contract on this multi-unit and it was accepted. Thank God, I was with in the terms of the contract to cancel the agreement and receive my earnest money deposit back.
I calculated my cash flow to be 455.00 NOI. With a mortgage payment of 2100 per month 7/1 arm with 3-year prepayment with an 8.175 interest rate . He gave me a rough number. it does not include insurance and interest, so I plugged the insurance in the "other cost" excluding maintenance fees and vacancy.
| Estimated mortgage payments on 7/1 arm with 3 year prepay | $2,182.00 |
| excluding principle and Interest built into the loan |
| May need a personal loan of 30k |
| Rent a year | $50,400.00 |
| Monthly | $4,200.00 |
| A list of all Annual Expenses estimated run down |
| Water/sewer/trash | $2,200.00 |
| Gas Heat | $1,440.00 |
| Common area Electric Annual | $60.00 |
| Insurance | $2,920.00 |
| City License 75.00 unit= 525 years | $525.00 |
| Management fee at 10% | $6,000.00 |
| County Tax | $4,028.00 |
| vacancy |
| Maintenance fees |
| The other cost breakdown |
| water/sewer/trash bill | $2,200.00 |
| Gas Heat | $1,440.00 |
| Common area electric | $60.00 |
| City License | $525.00 |
| Total | $4,225.00 |
| not including maintenance fees |
