Opinions on this property I'm looking at tomorrow
BP,
I currently have 4 duplexes, probably C properties. This was my first deal and I probably over-payed and took on properties that needed more work than I could have anticipated but I made sure the rents/sale price ration was high to cover it so It hasn't wiped me out... Also, I have learned a lot from this experience. So that is some background of where I am at..
I am looking to do my next deal soon and am looking at a property tomorrow. I'm not necessarily asking anyone if I should go for it but wanted to know if you saw any red flag in the numbers? These would probably be B properties and are very well maintained, and simple brick structures. There are two lots that each have 2 up an down duplexes on them. Here are the numbers for 1 of the lots. They are basically identical.
$2300 rent per month (4 units from 2 duplexes in same deed)
$161,000 asking price
All utilities payed by tenants, including water:)
Taxes are quite high at $6500. However, the assessed price is about $40-50k higher than what i expect to purchase this for so i think I can get the taxes down to around $5k to $5.5k. I did this on one of my other properties already
With 5% financing at 20 years, $250 / month for maintenance and $150 for insurance i believe I can CF $500-600 / month. I can easily finance the DP with a HELOC I have at 3% and can get a 10/20 loan from a small local bank at around 5%.
Does anyone see any red flags in these numbers? After looking at hundreds of properties on the MLS over the last 2 years, this one definitely is at the higher end of cashflow potential. I would love to hear your opinions. Thanks!
Kyle