This portfolio consist of 11 single family homes and 1 garage apt, so 12 units total. Gross rents
are $9,100. Properties are mortgage free. Value 1.3 Million
Back of the envelope math I would assume all expenses to be around 40%-60% depending on where you are and reasonable condition of the properties. So based off of that your numbers are on the conservative side. If it fell into what I expected them I would dig deeper to get a more accurate picture of what the expenses actually are.
Of course this is without debt service of any kind. And I would also point out that I would never pay anything even remotely close to $1.3 mil for $43k per year.
This portfolio consist of 11 single family homes and 1 garage apt, so 12 units total. Gross rents
are $9,100. Properties are mortgage free. Value 1.3 Million
Back of the envelope math I would assume all expenses to be around 40%-60% depending on where you are and reasonable condition of the properties. So based off of that your numbers are on the conservative side. If it fell into what I expected them I would dig deeper to get a more accurate picture of what the expenses actually are.
Of course this is without debt service of any kind. And I would also point out that I would never pay anything even remotely close to $1.3 mil for $43k per year.
thanks Ed, I didn't pay anywhere close to that for portfolio. I figure I'm $200K of my money into the houses over last 12-14 years, used rents to slow fix up and pay down notes. Many were bought at foreclosure. That's value where they sit today and the cash flow I am getting. My town fairly low income area, housing prices are rising much faster then incomes.
Gerald Peters the obvious thing to do in this case is sell. Do you own them all free and clear or are you just asking hypothetically as if you did?
If you own them out right I would sell. Take that money and put it in something extremely passive like municipal bonds if you are looking to retire. Or sell and stick it in more funds and earn 8-12 percent passively.
@Gerald Peters for 11 separate buildings that make $43K a year, I probably wouldn't pay more than $450K for them. You need a separate capital reserve fund for every single building and that would get really pricey.
I don't know what your market is like, but I feel like highest sale price would probably come from selling them individually as single family houses to retail buyers.