All Forum Posts by: Daniel Watrous

Thanks. Working with less than 25% to put down, so I am also considering a lease option to build the money down with the tenants already there. Do you have an opinion on option prices? I've read here on BP about getting no money upfront options from sellers and then ask 5% from buyers/tenants.

Hi everybody,

I am looking at 4 homes (all 2 bed/1 bath) on the same lot being sold together (with owner financing) in Connecticut.

Please take a look my expenses below and let me know if there is anything missing, because right now it is only a break-even (or just barely ahead deal) but the units are in a great location. There is a navy base, a coastguard base, and 3 major manufacturers nearby. All figures are quotes from providers with the exception of vacancy and maintenance estimates(*). Maintenance was estimated at $1.10/SF and I used a 6% vacancy rate:

Gross Scheduled Income $71,280

Vacancy Allowance* ($4,276)

Gross Operating Income $67,004

Operating Expenses:

Property Management ($7,128) 10% Gross Monthly Rent

New Tenant Fee/yr ($2,970) ½ Month Rent per unit

Property Taxes ($6,645)

Insurance ($5,698)

Maintenance* ($5,322)

Trash Removal ($1,896)

____________________

Net operating Income $37,345

All units have independent wells and electric meters. All the units are currently rented on annual leases. Thanks in advance for your input on my first potential deal.

Thanks for the link, very easy to follow.