Value of this deal?
Here are the facts on this potential purchase: (2) adjacent properties, (2) deeds, owner wants to sell them together.
First Property: (3) units
Gross Rents $1625 per month
Water/Sewer: $600 per year (approx.)
Insurance: $2800 per year (quote/ insurance company, non-owner occupied, seems high)
Taxes: $145 per month ($1740 per year)
Maintenance: $150 month (approx.)
Financing: 80/20/5, 1st @6.87%, 2nd @7.87%, 5% down-payment
PMI: 1.05 % loan amount
Vacancy/Rent Loss: 10% of gross (???)
Second Property: (2) Units
Gross Rents: $1150 per month
Water/Sewer: $600 per year (approx.)
Insurance: $800 per year (quote/ insurance company, seems low)
Taxes: $145 per month ($1740 per year)
Maintenance: $150 month (approx.)
Financing: 100% of purchase price @7.87%
PMI: 1.05 % of loan amount
Vacancy/Rent Loss: 10% of gross (???)
Tenants in area tend to be some-what unreliable. Turn-over high. Decent location, could be worse. Property is fair to poor condition.
Whats it worth?