All Forum Posts by: Justin Trudell

Thanks for the great information and the wise warning @Jerry W. I've been reading the mass.gov literature and have pretty much decided not to mess with security deposits if I can help it.

@J Scott - was counting on the 4k per year maintenance line item to cover capital expenditures over time. If I can build up a 10k reserve, I'm hoping to be covered on the major items, especially since it's a turnkey. I'll know more once I get into the property in the next week or so.

@Ann Bellamy - will look into the LL associations and start making contacts.

Thanks for the quick responses. I've added in some additional fees for water/sewer/common electric and adjusted the vacancy rate down to 10%. Numbers look more realistic now at cash of cash of about 8%. Overall expenses are ~60% of total gross income which i've seen as a metric in other posts. I'll keep researching the utilities to see if I can narrow it down a bit.

I'm a first time investor running the numbers on a triplex in central MA. 200k purchase price, 20% down payment and 5% mortgage. 3 units all rented at 1000 per month with assumed vacancy rate of 25%. Turnkey property, so assuming 5k in improvements, 4k in closing costs. Annual numbers assumed (3k taxes, 4k maintenance, 1k insurance, 3k for PM/admin fees). Total money down assumed to be just shy of 50k. My calculator is showing annual pre-tax cash flow at $5,643 which equates to an ROI of ~16% pre-tax. What am I missing here?