Located an Older Gentleman who wants to Jump Out. Wants to package a deal together and walk...not sure if I can bite that much off. He would do a contract but wants what the banks want and not giving me a hard number yet, just basing his number off of assessments and a package deal. They are all Single Family Homes, most in good locations, few loosers but profitable. All have permanant siding, all take care of own lawn/snow removal, all utilities are tenants responsibility. Here are the Numbers and let me know what you think:
Rent Tax Ins. 09 AsseV 07AsseV
$410 $73 $40 $43,200 $50,000
$375 $48 $40 $32,700 $32,700
$400 $65 $40 $38,000 $44,500
$400 $58 $40 $33,600 $40,200
$400 $64 $40 $37,700 $43,800
$365 $61 $40 $32,400 $41,800
$375 $28 $40 $19,100 $19,100
$400 $35 $40 $23,100 $23,100
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$3,125 $432/Mo. $320/Mo. $259,800 $295,200
TOTAL RENT: $3,125
TOTAL PITI: $2,502
TOTAL PROFIT: $623
**Used the 2007 Assessed Value Numbers as his Approximate Asking Price. He hasn't given me a distinct purchase price number on each property because he wants to cash out and sell in package.
**I'd like to have $100 Profit for each house, however I buy things with a 'Margin of Safety' knowing if I need to bail, I can and still make a profit or atleast breakeven.
**CAPEX is a concern: Most of the Roofs were replaced in 2001/2002 however furnace, windows and interior repair/replacements add up quickly.
**I haven't seen the inside yet...
**Rents are about $25-$50 below market (I figure you could add $250 to total rent upon vacancies)
**I figure you can borrow $7.4/$1000 (IE: $250k = $250 * 7 = $1750 Payment)
**
