Help! Need insight quick!
@David Bridgewater - We need more information. Okay would be 1% return - great would be 2%.
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.
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.
@David Bridgewater - The numbers look good until you factor in that CRAZY tax bill! Is there any potential for appreciation? If not - I would not be interested from a cash flow perspective because you won't have much...
Although its a pretty decent area, the appreciation appears to be minimal. Thanks for the feedback.
The property actually sits on 2 lots, hence to ridiculous taxes.
What is your vacancy? repair? utilities? management?
You are missing too much information for us to give you an answer.
My required return in an area where I expect no appreciation is vastly different than an area that is appreciating. You might want to try inputting the data into the BP calculator so you can see the whole picture.
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