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5 November 2013 | 24 replies
$500/month of gross should set you back no more than $40,000 per unit - no more.
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21 April 2015 | 65 replies
Here is what you need to account forProperty TaxesInsuranceVacancy Property Management (it sounds like you are managing them right now but there are expenses involved even in self management and if you plan to be a "mogul" this expense will have to be covered by the property at some point)Repairs Capital Expenses (roof, water heater, hvac, and everything expensive that only has so many years of useful life needs to be accounted for)If you aren't paying any utilities you need to figure that on average over the life of the property 50% of your gross expected rent will go to cover these items.
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25 October 2014 | 10 replies
My lender is telling me $161.66 for principal and interest but factoring in his escrow would be a total of $404.99 but I think his number for tax and insurance is a little high.After looking at the numbers and throwing in myself for repair reserve, vacancy rate, property management, I’ll gross $165 per month providing I rent it out on the low end.
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28 October 2013 | 16 replies
Gross annual rent: $24,000 Operating expenses: $7,300 NOI: $16,700 Mortgage interest ($250,000 x 15 years @ 3.25%): $7,460 Principal Payments: $13,620 Total Debt Service: $21,080 Cash Flow: $-4,380 Cap Rate: 6% COC ROI: -15.56% Original purchase price (2009): $280,000 Approximate current price (2013-2014): $340,000-$370,000 I still haven't figured out how to accurately determine my investment basis (and total ROI) since I'm not starting from year 1.
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5 November 2013 | 13 replies
Hi, I'm new to multi-family rental investing; trying to get my spreadsheets in good shape.Can someone help me understand: If the 50% rule starts out estimating 50% of gross rent goes to expenses, and folks on these forums have said it's not worth investing in a rental property if you're getting below $200/unit/mo cash flow, then...- At what LTV rate for debt financing is the cash flow calculated?
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4 November 2013 | 33 replies
That equates to a gross rental yield of 24% How do you guys achieve this in the states, cause if its that easy I'm packing my bags and taking the next flight to USA.
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4 November 2013 | 12 replies
There are plenty of places in Michigan, or Cincinnati where I invest primarily, or most cities in the midwest, where the neighborhood/submarket would be so poor that it would be a terrible deal even at an apparently good gross rent yield.Here are just a few things that are critical to determining if it's a "good deal" for you:What is the grade of the neigborhood (sub-market and broader area)?
19 April 2014 | 30 replies
, Lawn care: $240010- Original Asking price: $850K11- Accepted price:$650K if all cash offer and close in a month, seller husband died(verified) and she just wants out12- Price per Sf at $850K is $63.84, at $650K is $48.2013- 2012 Gross Income: $106,08014 Operating Expenses: $20,840, $12,000 of that is management fee15- NOI: $85,24016- Pre tax cash flow: $81,84017- Cap rate at asking price of $850k is %10 higher if i get it at $650K18- Cash to invest $500K, I own a paid off home worth $175K, talked to a lender who can get cash out of %80 loan to Value at %3.5 - 15 year loanso I can get $130K from House and $20k borrow from family to come up with the $150k short to pay the $650K19- 2013 Current rent collected increased from $8500 to $10090 Breakdown: Rent collected: $10,090 Monthly Expenses with current management company: $1730 Gross: $8360/Month = $100,320/Year Tax: $12000 Insurance: $7000 NOI: $81,300 with management company - add $12,000 if no management company usedPlease let me know how to proceed, good deal or stay away?
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3 November 2013 | 18 replies
A multi family at less than 12% gross rent yield in Louisville sounds very expensive and I'm not sure would even cash flow with a 75% LTV mortgage.