Good Deal
Hello;
I'm a newbie in owning property, but have been investing in other phases or RE for several years. I'm interested in student housing. I understand all of it with students, damage, parties etc, etc. The last few months I have worked hard learning all I could. I also have experience paying inflated rents for my kids while they lived off campus and seeing the little to no money placed back into the upkeep of the buildings.
But learning to analyze has been a exciting at times and nauseating at other times. I need to get it right each time. So I'm looking for help from anyone that would be so kind to provide their opinion.
I'm looking at a 2 family (8 beds / 2 baths)
My son will be one of students
Can get $450 / bd (all included) heat, HW, cable, internet
7 Students x $450 = $3150 monthly; $37,800.00 yrly
Listing price $199,000.00, asking price currently is $159,000.00
Assessed @ $107,000.00 (weird it this low)
Full market value @ $103,000.00
Taxes per year @ $4000.00
I'm looking at Insurance (Idea's) should it be insured for the purchase price or replacement cost(?) What's the norm?
Insurance will be anywhere from $1000 (purchase price) - $2000 (replacement cost) annually
Not sure, if numbers are right
I have the option to borrow cash from private investor - good? @ 4%
Should I go through a mortgage company / bank.
I want to build my portfolio steadily, so not sure which way to purchase. I just don't want to purchase properties 1 every 3 years, 1 every 5 years scenario.
Is there any quick formulas out there to determine good deal or not?
I'm located in the NE
Thanks again
Vince