2- 8 unit apartments
So I know what everyone says keep it simple on first purchase but this seems like I have too if I could get it at this price, right?
The kicker, its current in government 515 where there's assistance on rent and lower taxes on property. So these rent rates our my research on market value. Current renters are 62+ or disabled and like it there and could get a voucher with section 8 to pay for my price of current market rent and take it out of section 515 program. These are the numbers and would really appreciate any feedback. Thank you in advance
Revenue
Gross Potential Rent= $550/month x 8 =$4,600 x12= $52,800 & $475/month x 8 x 12 months =$45,600=
$98,400 + $1,427 laundry= $99,827
Vacancy 10%= $9840
Gross Potential Revenue= $89,987
Expenses
Operating/Main. Expenses= $18,358
Administrative Expenses= $14,727
Total Utlilties= $8,990
Taxes/ ins right now= $9,888 but taxes would jump to $7,500 per unit so would increase it to $19,888
Media Expenses= $761
Total Expenses= $62,723
NOI=$89,987-$62,723=$27,264
Property worth using cap rate of 10%= $27,264/.10= $272,640 x .2 down= $54,528
$218,112 loan at 4% for 25 yr with 5 yr ballon= $1,030/month x12= $12,360
Expenses + mortgage= $75,083yr
Cash Flow= $89,987- $75,083=$14,904/12=$1,242 month