All Forum Posts by: Terry Fisher

I took another look and this property will break even if the owner agrees to sell at 70k

so I decided not to bother with condos like this, I will look for multi units bldgs, I may find what I'm looking for. Maybe I was foolish to think that single residential properties can net me 250 / month from day 1.  

ok... about the debt service I may have overestimated this ... I looked for mortgage interest calculator and found this and it turned out that for the first five years interest would come to 3500/ year ...

I heard back from the listing agent and condo fee covers ground maintenance, exterior maintenance and the water portion of the utilities.

and the homeowner is responsible for the electricity, gas and hot water tank rental

heating/ cooling is baseboard /electricity ... so I think I under-estimated the utilities 

I have to have another look at this .. 

Hi,

Ièm getting ready to buy my first rental property and I wanted to do my due diligence exercise with you.  that way you can point my attention to things newbies like me dont see when they start out.

Hereès the details

It's a condo ( townhouse) 

3 bdrm 

1.5 bath

rented for 1050 a month, all included,  lease ends in couple months

price 95k

the ad says upgraded flooring, upgrades on bath ( not sure exactly what that means)

let's not forget condo fee 250 ( not sure what I get for paying this every month)

taxes : close to 1 k per year

what I'm trying to figure out if it's worth it to buy it at this price, after I pull new mortgage and put my 20% down. ( I already have a mortgage since two years and it's working like clock work) 

This is the calculation what I did so far:

Gross income per year : 1000 x 12 = 12000

Vacancy rate : % ( I dont know)  but I did a search and didn't find any vacancy in that neighborhood. I'll assume 10% and work out a worst case scenario

so this brings down the gross income to : 12000 - 1200 = 10800

Expenses:

condo fee : 250 x 12 = 3000 yearly

Insurance: 1200/ year

utilities:  3000/ year

total:  7.2 k / year

Net income without debt service:  10.8-7.2 = 3.6 k

Debt service:  

500 x 12 = 6000

Net income:  with debt service: 3.6k - 6 k = -2.4k 

this is what pisses me off, why this real estate agent would say, great for investors,  maybe I should give him a call. 

please need your feedback on how to proceed with this. thanks 

thanks..

so it's kinda of a bait that the agent or the owner throws out there, hoping for an investor to hookup.

how an investor protect themselves from owner defaulting on the mortgage though? is there an insurance policy for that? 

one of the listings I came across, two apartments with a store front, had " seller willing to hold mortgage".  what is this supposed to mean? 

currently looking into buying this property,it`s an apartment bldg ( fourplx)

asking price 258,000

2014 numbers are as follows

Maintenance - $2482 (includes 2 new fridges)

Gas – $2300

Hydro/Water – $4120

Insurance – $2950

Taxes – $4380

Total Expenses - $ 16200

Rental Income – $37,500

Net Profit - $21250

The building is heated by a natural gas boiler that is about 30 years old

The windows were put in late 1980’s.

The roof was done about 10 years ago.

I`d like to know what is a good price to offer to owner?