First time buyer

2 Replies

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.

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