Multiplex with shared utilities buy or walk away?

[Mark Bradford]

Here it is. Nice large older home off of a downtown area. Not to bad of area. Some abandoned homes and some quite nice This home is done! Newer windows upstairs, two new furnaces with a/c, newer water heater, new vinyl siding (done well) only 30k to buy!!!!! So where is the problem. All utilites will have to be paid me!!! Math is broke down like this. 10 yr loan 305/ month est of 300/ month total utilities (gas water and elc). 60/ month taxs and ins. Give me a "base" month cost of 665. Lets not get into vacancy rates and maintance accounts..... Lets just talk basics. Each unit (2) is a two bedroom two bath. Dishwashers, stove, refridg, and cloth washer and dryers. The believe i can rent the upstairs for $500 and down stairs for 575. Total income of 1075- 665 leaves 410/ month. Do I buy?

[Larry K.]

Lets say the $430/month NOI is right
430x12=5,160 NOI yearly
5,160/30,000=17% cap rate
Not sure how much your are putting down but buying at a 17 cap is a good deal for you.