What's my real profit?
I am considering putting an offer in on a duplex. The financials are as follows:
Rent charged $1400 total
Mortgage(land contract monthly payment) $300
Taxes $109
Insurance $72
Mgt Co $120
Utilities (landlord pays one side of utilities) $200
Maintenance $140
Vacancy $140
Cost to payback my $ back to me for down payment $231
Total cost of $1312 each month
That means I'll make $88 a month if everything goes as planned (which it won't) My question is what am I missing here. The cost of the land contract monthly payment is only $300 per month and rent is essentially $1200 because 200 covers utilities. so that is a $900 difference. I feel like I'm not using a correct assumption with something. Any guidance would be helpful. TIA Chuck