would you subject to this property
townhome, class A area built 1983
1 year lease signed in july at $1000
Balance on loan $72,000 Retail value $85,000 conservatively.
Seller willing to pay all closing costs if legal?
Price for acquisition $0
Annual numbers.
gross rents $12000
taxes 1800
insurance 800
hoa 2175
NET INCOME $7225
Debt servicing $503/m - $6036
6% interest about 140 P 360 I
Leaves 1189 cash flow to account for vacancy and mx
My opinion is that it should break even if not eek out a small cash profit but it will acrue $1800 of equity a year. Considering it will cost me nothing except a mx inspection and time initially i'm thinking its worth the risk of vacancies and future mx. It is in an appreciating area.
Would you?