Is this a good deal ?
The property is located in upstate New York , it is 2 attached properties with one deed . Total of 4 units. "1's rent is 1000 for a one bedroom with the lease with section 8 across the hall has a month-to-month lease for 900 a month one bedroom the other one is 850 a month one bedroom just moved in month-to-month lease and the one downstairs has a month-to-month lease or rent is 750 " according to current owner for a total of 3500/Month = total of 42k/year . I would be buying with all units rented as currently set up . The expenses are as follows, conservative estimates .
$10k /year taxes or $833/month
2500/year insurance or $209 month
10% vacancy or $350 a month
10% repairs/maintenance or $350 a month
10% cap ex or $350 a month
10% property management or $350 a month (the property is an hour and a half to two hours away do you think it would be better to do it on my own instead of hire someone)
Debt service at $700 with a 20% down payment on 160k . I get a cash flow of $358/month. Is this deal worth doing? Also there is a empty garage that is attached to the property that has potential to become another unit. Also what do diligences should I do. Tenants pay all their own utilities
Most Popular Reply
@Faysal Alam If you've looked at the P&L and the RR and given us all the accurate numbers, and you've viewed the property and feel it is in a good neighborhood and in good condition, I would say this is an awesome deal. That said, whenever I see an awesome deal, it makes me 10x more cautious. Is it in a flood zone? Are their liens? HOA? Eminent domain? (That kind of thing...)
Make an offer to tie it up. Submit your pre-approval letter with your offer. Put no more than $1,000 down, drag out the inspection time to 45+ days, make sure to add every contingency you can, and then start your due diligence investigation.
Good luck!