All Forum Posts by: Vinet Fils-Aime

Thank you very much. I really appreciate your inputs in this.

Should I purchase this one or not?

Asking price: $249,000.00 owner financing with 50% down for 3 years at a rate of 5.625%

Total number of units: 4 all two beds one bath and all fully rented out

Cap rate: 9%

Monthly gross income: $3,275.00

Expenses:

Tax: $5,658.37 /12 = $471.23

Insurance: $5,513.27 /12 = $459.44

Pet control: $120.00

Landscaping: $80.00

Water: $202.00

Maintenance and repairs: $3,275.00 * 15% = $491.25.00

CapEx: $3275.00 * 12% = $393.00

Mortgage payment: $713.81

Total Monthly Expenses: $2,930.73

Cash flow: $3,275.00 - $2,930.73 = $344.27

Cash on cash = $344.27 * 12 / $125,000.00 = 3.30%

Please advice

Thank you all for your thoughtful answers.

Hi BP community,

I need your help with my first potential deal.

How much should I offer to purchase the following two properties? Since both properties are exactly identical in term of number of units, parking spaces, gross incomes, expenses and so on, I am combining the specs so to provide a less complicated picture.

Asking price: $700,000.00

Total number of units: 8 all two beds one bath and all rented out to long term tenants (Tenants pay water and electric)

Cap rate: 8%

Yearly gross income: $84,000.00

Total expenses: $22,202.00 (Utility: $1,920.00; Lawn: $1,680.00; Pest control: $1,200.00; Insurance: $7,000.00; Taxes: $10,402.00)

NOI: Yearly gross income ($84,000.00) – Total expense ($22,202.00) = $61,798.00

Please advice.

Vinet Fils-Aime

Thank you both Ali and Bryan.

Thank you very much for the clarification.

Hi Joe,

Thank you for your very quick response. I'll keep that in mind.

Hi All,

I am relatively puzzled as a new investor whether I need to invest in single or multifamily homes. I would appreciate if someone would provide some insight to each category; like pros and cons for each.

Thank you.

Welcome to BP. This is the place to learn.

COC is the annual cash flow divided by your basic investment

COC = Annual cash flow / basic investment

I hope this help.