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Buying & Selling Real Estate

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Jamal L.
Pro Member
  • Specialist
  • Baltimore, MD
155
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394
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Deal or No Deal? it cash flows, Right?????!!!!!!!!!!!

Jamal L.
Pro Member
  • Specialist
  • Baltimore, MD
Posted Nov 20 2015, 13:19

Owner is selling because she is up in age and wants to retire. 

Sale Price                   $25,000

Closing cost                $2,000

Total Acquisition        $27,000

It is currently occupied with tenant. Tenant exceeds rent requirements; and has no intentions on moving any time soon. Tenant makes over $100,000 a year (documentation to support) and likes the area because family is near. Tenant currently pays $950 a month ON TIME! Also pays own water as well as electric bill. I spoke to the tenant personally and she says she has no complaints. This property is in good condition and located in a C class neighborhood. 

  • Gross income                  $11,400
  •  Vacancy allowance         -$2,280
  • Gross operating income   $9,120
  • Taxes                                -$800
  • Insurance                         -$1,200
  • Maintenance                     -$700
  • PropertyManagement      -$1,140
  • Net operating income       $5,280 
  • Net without PM                 $6,420

Did I miss anything? Do the numbers make sense to you? Would you buy this opportunity if you could? Feedback is monumental.  

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