Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 11 years ago on . Most recent reply

User Stats

99
Posts
46
Votes
Tyler Smiarowski
  • Accountant
  • cedar rapids, IA
46
Votes |
99
Posts

What do you think of this deal?

Tyler Smiarowski
  • Accountant
  • cedar rapids, IA
Posted

Here it is:

Purchasing 7plex with 6 garages for 195k. Located in historical district of Cedar Rapids surrounded by mostly commercial property and a brand new medical facility.

Bank is lending 177,600 and I am having the seller carry a 2nd of 17,400 amortized over 20years @ 5% with a 5 year baloon. So I am not putting any money into the deal.

Income:

Rents - $2895 per month

Laundry - $80 per month

Garages - $220 per month

Total Income - $3195 per month

Expenses: Total $2400 which includes $162 per month of maintence factored in.

Net cash flow per month is $795. Current rents are low for the market, easily will be able to increase rents by a total of $250 per month and reduce property taxes from $558 per month to $300 once I co op the properties, which I have done with my other properties. Based on the figures my projected net cash flow would then be $1345.

Just wanted to get some opinions on this. I am closing on this Nov 4th. This will be my 6th multi family property for a total of 23 units.

Thanks, Tyler

Most Popular Reply

User Stats

15,749
Posts
10,947
Votes
Will Barnard
  • Developer
  • Santa Clarita, CA
10,947
Votes |
15,749
Posts
Will Barnard
  • Developer
  • Santa Clarita, CA
ModeratorReplied

only using actual current costs is not going to give you a real life and accurate amount. You are not accounting for expenses that do not occur on a regular monthly basis. Your 5% for both repairs and vacancies is not even enough for vacancies alobe. The 5% unemployment rate in yoyr area does not equate to vacancy levels. Doing maintenance and management yourself may increase your cash flow but it is a job and when you sell, your buyer may likely hire it out and base the expenses on the property. You are cheating yourself in the long run using your format.

Loading replies...