First property #'s
Single family 2Bed 1 Bath
Rent 725 Month
Taxes 120M
Water Bill 50
Property management fee 10% 80 M ( Rounded to make it easier)
Expenses = 250 Month
Sales prices 40K
Offer- $30,000 40% down. 18K Owner financing for 5 years for $350 month
That puts us at 725 Rent - 600 expenses = 125 monthly net gain
Now property management I found someone who would do 5% on the rent.
I can raise the rent after winter to $800 which seems very possible. And have the tenants pay for the water bill every month.
New #'s after changes
Rent +75 month - 50 water bill - 40M from new management fee being (5%).
165+ more dollars a month new monthly net gain = $290 month x 12 months = $3480 Year
Property can be paid off in 2-3 years from by just throwing the profit in the principal.
Now this is my first property it is owner financing is this deal worth it ? Property is in good shape. I'm thinking about long term on my next deal I'll most likely go with conventional which would be a triplex or quad.