I recently (about a month ago) bought myself a fourplex to rent. This is the first building that I've ever purchased and I'm curious as to how you all think I made out:
Sale price of $130,000 (however I did an FHA loan for the down payment so the total price was $136,900 with the $6900 gifted back to me). At $475 rent I'm having an easy time getting people to come in and look at the property although I still have one vacancy. Taxes are approx. $2300 annually and insurance is $1200 annually as well. Interest rate on the loan is 6%.
I figured it up and including all of the maintenance that I've put into the building I'm going to be about even for this year on a cash basis (I had to repair some flooring, doors, etc.). Add back the tax benefits from starting up my own business and I'm showing a small profit (ROI, not including any appreciation, is around 3%). Is this below average for the first timer?
So you're looking at revenues of $1900 a month. Are you breaking even before or after the last unit is rented? Have you figured out for future vacancies also?
$1900 is fully rented. At 3 renters ($1425) I can cover PITI and water/trash expenses (roughly $1300 total). And yes the breaking even figures in about 2 months' worth of vacancies over the course of this upcoming year.
Not in my opinion. As long as you can cover your expenses, you're doing great!! Often, people will find themselves in the red for a while and have to work UP to breaking even or small ROIs. You're doing well. Just think of how well you'll do after it's paid off. Where do you live that you can buy a fourplex for just $130K and charge only $475?
It shows in the upper right hand corner of the post hes from Dayton Ohio, Then it shows towards the top in the middle that this is from 2005.
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