Hi, I am Lina and this is my first post. Husband and I own and rent out two one-bedroom condominiums, but because we bought for the purpose of living in, we never evaluated their investment value. We are currently evaluating a 3-unit in the area.
My question is this: how do we value this 3 unit? Also, what would you advise as to insurance? We are able to put 20-25% down based on what the bank offers.
The context: The current owner listed the property on craigslist for $375k OBO and willing to pay 2.5% to buyer's agent. The property is not publicly listed as of yet, but current owner says he plans to list soon. Exterior of the property is in decent shape. Current owner is making a few minor repairs, but otherwise selling as-is. Roof and HVACs are about 8 years old. He has been renting without laundry in the units, but they include washer/dryer hook-ups. Units are all very similar with older kitchens and laminate flooring. Current owner is repainting and replacing carpet in one unit, which was in the worst shape. Bathrooms are in decent shape with slightly outdated look. We are lining up an inspector to view the property this weekend. We don't have a buyer's agent, but plan to pay a real estate attorney to draft any documents and do the settlement/title work.
The numbers:
3 units (all 1 bed/1 bath) $700-800 average rent for all units. I believe it to be 10% under market.
Area is an C, urban location in Washington, DC.
The Expenses:
We plan to manage the property ourselves in the beginning, with the idea of getting a management company eventually.
Very little to no vacancy, according to current owner.
Taxes at $5k (assessed at $306k, proposed assessment for 2018 remains at $306k according to property tax records)
$0 in electric costs - separately metered
$110 in water costs
The loan, and the insurance (which will be decided by all of you as you will help me know what to offer!)
Thanks for the help in advance guys!
