All Forum Posts by: Adam Happel

@David Beard - the taxes I'm not concerned about. the tax rate in this area is really low. Insurance I haven't looked into hard numbers but i'm sure they are low now that I look at them. They said that vacancies have only lasted 2 weeks but I would rather be safe than sorry on my budgeting. adding another 6,000 to those numbers will change the percentages a lot. Thank you guys so much for the input, I really want to be well educated before I make a purchase like this. After using the table I think I need to walk away from this unless they are willing to go down quite a bit.

no rehab needed, historically there is good occupancy. property management was off of one quote I obtained of 10% plus first month rent on a new lease signing, leases are for 1 year currently. i'd love to get it for 250 but that would be quite a bit lower than what they are wanting. not sure if i should just offer 250 and wait or just walk away. property has been on market for 9 months already so i would think there would be some room to come down. what would be a good figure to use for repairs?

thanks for your response,
i included capital expenses in the 2000 for repairs/main.

looking at a duplex and triplex. $300000 total
240,000 financed at 5% for 30 years = 15,460
taxes=2700
insurance=900
property management=6660
repairs/maint=2000
utilities=600
lawn/grounds=500
misc. =1500
vacancy=800

rent income of 36000

net operating=20,340
cash flow after debt service= 4880
taxable income after depreciation and add in principal payments= (751)