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Check out these numbers, let me know what you think! 2 posts by 2 users

Alex P.

Real Estate Investor

58 posts

Posted: 10/03/2008 at 06:43PM

There are 2 properties each priced
at $45K, there is a 2fam and a 3fam

Let me know what you think:

[/u]
Purchase Price: 45,000
Appraised value - $80K
Lot Size:3,630
Living Area: 2,160
Taxes 899/yr
Insurance 700/yr
Total 1,599/yr
Income: $1,100 x 12mos = $13,200/yr
Net Income = $13,200 - $1,599 = $11,601

Annual return: $11,601/45,000 = 25% return

[b]
·Purchase Price: 45,000
·Appraised value - $80K
·Lot Size: 4,160 sq. feet
·Living area 2,654 sq. feet
·Taxes 1,594/yr
Insurance 700/yr
Total 2,294/yr
Income: $1,367 x 12mos = $16,404/yr
·Net Income = $16,404 - $2,294 = $14,110

·Annual return: $14,110/45,000 = 30% return

Sponsors:

Jon H.

Real Estate Investor
Denver, Colorado

Moderator

3993 posts

Posted: 10/03/2008 at 10:21PM

Well, you've missed most of the expenses. Search for "50% rule" and you'll get an education on all the other expenses.

First one:
Rent: $1100
Expenses: $550 (50% rule)
NOI: $550/month
NOI: $6600
Cap rate: 14.7% ($6600/$45,000)
Not bad. But, most folks will have a mortgage on RE, so lets assume a payment on a 7%,30 year note:
Payment: $299
Cash flow: $251/month, or $125/unit/month

Looks like a good deal.
The second one has estimated NOI of $683.50/month, cash flow of $384 or $128/unit. So, also a good deal.

Auction Land Davie, FL 10 acres

Check out these numbers, let me know what you think! 2 posts by 2 users

Alex P.

Jon H.