Making sure every expense and future Cap.

They are asking 299,900 Land locked, no room for expansion.Total Income     22,187Insurance              189Liability Ins.           767Interest Expense   174Loan Interest     10534Labor                  6400Repairs                 646Supplies                90Taxes                 2532  (Not sure what value amount this is on)Telephone            841Utilities (G & E)     802******I talked to commercial lender today and he said they require 30% down, financed commercially at possible 5.3 to 5.6% + for 15 or 20 years.  

Now let's look at the numbers (Monthly)Average rent/unit = $775Gross Income with 94% occupancy = $24,02550% gross income for expenses = $12,012Bank Mortgage payment for $1,875,000 @ 4% 30 year = $8,952Seller finance $375,000 for 6 years @ 4%, with interest-only payments = $1250Private money loan payment for $300,000 for 6 years @4% also with interest only payments = $1000Subtracting all expenses and debt service from gross income gives me = $811 in cash flow which I would set aside to use only on the property.

Sod is not that expensive.

You might be lucky to break even after all expenses unless you're only looking for an appreciation play.

The reason I am having trouble with this is because when comparing condos, chances are they will have the same Cap Ex and Vacancy numbers even if one is more expensive than the other.

@Dakoda SpencerZillow shows tax information but you will also want to verify it on the town website because there may also be an additional town or school tax.I would probably pay cash for the property if rent is going to be so low because you will need some money to cover ongoing expenses.

Sell the stuff you dont use but like to keep there and eliminate that expense from your monthly nut.

Over the long haul, I like to look at using IRR and time value of money, which includes the whole process of buying, income/expenses and selling the asset.

The most important factors are tenant selection and keeping the good tenants so that you have little turnover (major expense).