I am looking inot buying duplxes in my area for 115-150k.
I am trying to figure out what kind of positive cash flow they will create with zero down and the current monthly rental rates.
120k with 0 down
2800 a year in property tax
1800 in gross monthly rent
180 a month for proerty manager
How do I figure mortgage ins.?
and what else should I calculate?
Your biggest expense is going to be debt service. Contact a mortgage broker and find out what kind of interest rate you can get with 0 down, also ALL COSTS associated with getting the loan and the amount of any PMI.
Contact a few insurance brokers or agents and ask for quotes on Fire and EC policies.
Join a local REI club and network, network, network! Read a few books and this site to learn about LANDLORDING and forget the idea of hiring a ppty management company! You're concerned about mortgage insurance which is probably less than 1/10 of 1% of the loan, but you're willing to bleed 10% OFF THE TOP of your income?
Allowance for maintenance/repairs.
Allowance for vacancies.
Are those good numbers on the rent? Have you seen the leases? Are rates on the rise or flat in your area?
Why is the seller letting go of a duplex that, on the surface, looks like it has a pretty strong cash flow?????