Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
After buying a home, how soon can I go to a local bank to get qualified to purchase a multifamily home? I currently own/owner occupy a duplex that has no mortgages and I plan to refinance it to purchase other multifamily after buying a single family home in a month. All ideas and advice are greatly apperciated.
Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
11y
@James Wise thanks James. How do I go about analyzing rental properties correctly (Income - Expense) I find myself lost searching for the taxes(school, property, borough), insurance, and mortgage payments
@James Wise thanks James. How do I go about analyzing rental properties correctly (Income - Expense) I find myself lost searching for the taxes(school, property, borough), insurance, and mortgage payments
To do a quick calculation on a rental property I would do the following.
Rents are 1k/mo. Assume that at least 6k per year will go towards your expenses. Repairs, vacancy, non payment, evictions, CapEx etc.
Now we have 6k per year. After that back out your yearly debt service. The money left over is what your a making off of your rental every year.
Will every year always be exactly like this? Absolutely not. Will every property run the same? Absolutely not. The nicer the property the lower the expenses. The lesser the property & tenant quality the higher expenses. In the long run the numbers generally work out to be around this number.
Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
11y
@James Wise I'm considering buying a multifamily(renovated) in the Philly area due to the fact I will only pay property tax as oppose to the neighboring burbs where I pay too much taxes (school and borough). I find it difficult make a decent cash flow. I collect $900 rent and I'm considering increasing rent $20 more dollars next lease term. What do you think?
Brooklyn, NY · Member since 2015 · 15 posts · 3 votes
11y
Ayodeji Kuponiyi I live in Philly, as well. I rented a 4BR SF home in Northern Liberties, where that young girl was tragically shot for her purse in fall of 2013. We paid $2700/month in rent. Not sure what your property's like but $900 seems like a heck of a deal on rent.
@James Wise I'm considering buying a multifamily(renovated) in the Philly area due to the fact I will only pay property tax as oppose to the neighboring burbs where I pay too much taxes (school and borough). I find it difficult make a decent cash flow. I collect $900 rent and I'm considering increasing rent $20 more dollars next lease term. What do you think?
I'm not familiar with your area but if comparible properties are going for $920 It seems like a reasonable plan to me.