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Updated over 10 years ago on . Most recent reply

User Stats

386
Posts
151
Votes
Mike Landry
  • Investor
  • Montgomery, TX
151
Votes |
386
Posts

would you subject to this property

Mike Landry
  • Investor
  • Montgomery, TX
Posted

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?

Most Popular Reply

User Stats

386
Posts
151
Votes
Mike Landry
  • Investor
  • Montgomery, TX
151
Votes |
386
Posts
Mike Landry
  • Investor
  • Montgomery, TX
Replied

thanks Jeff! 

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