@Brian Gibbons I have listed the incomes vs expenses below
Income | Monthly | Annual |
Gross Income | 895.00 | 10,740.00 |
Expenses | Monthly | Annual |
Taxes | $112.92 | $1,355.00 |
Insurance | $29.17 | $350.00 |
HOA | $125.00 | $1,500.00 |
Management Fee | $71.60 | $859.20 |
Vacany & Collections | $71.60 | $859.20 |
Monthly Repair Allocation | $44.75 | $537.00 |
Total Operating Expense | $455.03 | $5,460.40 |
Net Operating Income | 439.97 | 5,279.60 |
I spoke with the current property manager and he stated that this rent is very close to the market value and they may look at raising the rent $25 when the lease renews in June.
When I look at this Pro Forma it shows me that this would not be a great property for me to buy and hold based on the amount I would need to finance, so I would ultimately need to sell this property to a retail buyer. In your opinion, is your assessment the same?
If I acquire the property via Sub 2 were you then suggesting that I then list the property with a realtor and pay the commission?
@Audrey Truesdale could you expound on using a lease option to structure the deal after acquiring via sub 2? Where would you market a lease option at? MLS? Craigslist? Etc?