Austin and Texas in general are so far above the average, they shouldn't count!

Definitely use this and plug in your findings.I've never done a multi unit deal like this, but it sounds like you need to do some investigation, and yes, I would count on higher than normal expenses in a building of that age, unless it has been completely renovated.Good luck.Jeff

Make sure they are acceptable, within one mile to three miles, don't forget style of the home in addition to sq. ft and the usuall bed/bath count.

Count me in!

So if the gross profit (not counting re-sell fees) was $250k, then you could expect a fee of around $25k, however, on a spread that large, often the % drops a point or three.

Nothing that you want to count on to pay the rent!

., but such a screwy floor plan counting bedrooms was an exercise in futility.)

My goal at the start of '09 was to finish the year with at least 10 units and at least $1,000/month in passive income, not counting principle paydown.

However, the lender will only count some fraction, 60%, I believe, since you would have to pay the taxes and penalties to actually use this money.

Assuming net income is $9400/month with operating expenses @ 40%, then monthly NOI is $5640.Annual NOI is 12 x $5640 = $67,680.I wouldn't count the "potential" income from the other lots...no reason the seller should get paid for income he isn't generating.Given NOI of $67,680, the value @ 10% cap would be $676,800.From that, you might want to subtract the maintenance costs to arrive at a reasonable price.All that said, I wouldn't take the seller's word for the 40% expense ratio.