All Forum Posts by: Jason Goslinga

Keep on looking!!

Thanks for all the replies.  Decided to pass on this one.  Had some insurance come back and needed flood insurance because its by the river and just made it too short for cash flow.  Looking at different properties now.  Thanks for all the help

@Jason Bott  I will not be living there.  It will be an investment property.  

@Kevin Kurt    I have checked the taxes and they have a assessed value and a fair market value.  The assessed is at 110k and fair market is at 128k.  Not sure how they figure that, but would they be doing their tax base of 110K?

@Chad Nagel if you give me the name of your insurer that would be great.  I thought 1500 a year seemed a little steep but this is my first rental and I know duplex have higher insurance rates than houses. If I could cut insurance rates in half I would feel more comfro

The property tax is actual.  3100 yearly or 258 per month.  The insurance is a rough estimate from my insurance guy.  he is supposed to get me a hard number later this week and will be contacting a few other insurance companies for quotes

I didn't put a property management fee in because I will be self managing this property

I am looking at my first duplex.  Asking price is 134K which is right in line for other duplex in the area.  2 units, 2BR/1BA each unit.  Rents for $700 each unit which is slightly below market rent which is around $750.  Tenants pay for all utilities and also mowing and snow removal.  Long term tenants.   One tenant was in upstairs apartment for 17 years and moved downstairs 2 years ago and that is when upstairs was remodeled.  New roof 2016.  New water heaters.  Slightly older furnances but working great right now

Here are my calculations - let me know if I am far off

 Monthly rent  1400

Costs 

Vacancy 5%  -                  70

Property Tax -                  258

Insurance -                       125

Maintenance 5%              70

CAPEX 5% 70

*Mortgage                          567

*Trying to stay under 125K for purchase.

30 year mortgage with 20% down @ 5.5% interest

TOTAL CASH FLOW    $239 a month or 2866 a year

25k investment so 11.4 COC return? Am I seeing everything correct?

Really well taken care of property with some long term tenants currently renting which are making me like this property.

Any thoughts?

Thanks
Jason