Help! Need insight quick!
@David Bridgewater This is impossible to answer. What is the purchase price? What is the NOI?
Im speaking more on the cash flow side of things once all expenses are paid.
I heard a few different rules of thumbs in regards to 3 and 4 units, but i can't find my notes.
It seem like I remember taking a course and someone mentioning 800-1200 is pretty good.
the property is a really nice brick building in a decent area; built in 2002; attached garage parking for all units.
Nevertheless, i am purchasing the 3 unit for 136k
I feel that I can rent each unit for 900
The taxes just went up 35% to 7600 which cut into my profits. (It sits on 2 lots;hence the ridiculous taxes)
total debt service is about 1500/month
it seem to work out even with the increased taxes, but I wanted another set of eyes on the deal.
Your asking a completely subjective question. Some people are happy just covering expenses, while others maximize cash flow. This really all comes down to one question. What is the minimum dollar amount that you are comfortable walking away with each month, and how close is that spread with rising costs? I wish I could give you more, but there are so many factors like @Brie Schmidt previously stated.
hard to say without more info. For myself, I would be satisfied with $1K a month profit. But did you really account for all expenses? I am surprised a 136K house can get a 900 rent....nice neighborhood.
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