Interested in a property

3 Replies

Hello everybody:

I am new to the real estate world and seeking advice.  I am trying to purchase my first rental property.  It is a 4-plex for $65,000.  Currently, all 4 units are rented and the total rents add up to $2,265.  1 tenant has been there for 20 yrs, the other 5 yrs, and the others about 2yrs.  The tenants pay their own electricity.  The landlord pays the water, which comes up to $2600 annually.  Also, the landlord pays about $360/month for heat.  The taxes are $4600 per yr.  I plan to hire a property manager, who charges 9% of the gross rental income.  Do you all think it is a good deal?

@Dion Jacobs

Assuming that $65k is actual market value and you are paying cash I'd say it's a good deal. Without knowing details and how much work the property needs with the numbers you provide your monthly cash slow should be around $760 which is 14% cash on cash return. 

Try to use rental property calculator and see what else you need to factor in your calculations 

@Yuriy Skripnichenko :

Thanks for the response.  I appreciate the advice.  I ran the numbers through the rental property calculator and there is good cash flow.  The property is in decent shape; it may need some minor repairs.  There appear to be no significant problems and the roof is less than 10 yrs old.  I plan to have a home inspection sometime.  My overall impression of the property is that it is solid.  I am leaning towards doing a cash purchase.  
you're getting >3% rent to price ratio. that's an awesome deal in my opinion.

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