I am looking at a 2 family with 1 bed 1 bath in each. I am curious where my net profits should be at the end of the year. The cash on cash is 25% net profit is 5500 a year. Should I be looking for better returns? Purchase price is 115000. 20 percent down. Landlord pays water and sewer and a landlord electric bill.
25% CoC is fantastic if it's accurate.
Based on a quick analysis and using only the #'s you provided to earn those returns you're going to need to rent both units out for at minimum 1100 each. Post your expense projections and we can make sure you're accounting for them correctly.
1200 per year for water and sewer 1200 for insurance 450 for electric taxes are 5500 mortgage will be based on purchase price. They want 119000 for the property id lIke to get it under 105000. First floor is in brand new condition. Remodeled 2013 there should be no problem getting 850. 2nd floor hasn't been touched in 20 years as someone was there for the last 20 years. I feel I can get 800 for that floor. less vacancy and repairs which as I can see there is 1 repair of a rotted floor near the front entry door.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!