Hartford, CT · Member since 2014 · 41 posts · 6 votes
I found a home in connecticut. Its a 3 family built in 1927. It's been on the market for a while and has changed hands as far as agents representing the seller goes. They're asking for 180k. The rent is 1k per floor. But here's the kicker. The mill rate is 74.29, which is 13k/yr. with this in mind my estimated mortgage would be like 2.5k/month.
Other than a water bill, what other expenses should i know about, as I've never owned a home before. Keep in mind that the average income of this town is 15-20k so section looks like a strong possibility
First of all, you can probably negotiate the price if it has been on the market. I am assuming the $2,500 includes mortage, taxes, and insurance. Other expenses would be upfront repairs, maintenance, and vacancy.
The mill rate in Hartford is just disgusting. I have a two condos in Bridgeport, where property taxes among the highest in the country next to Newark and Philadelphia. It's ridiculous. Kills deals.
ok, so i hear you guys loud and clear. But for learning purposes, given that i just learned about cap rates, NOI, IRR, cash on cash etc. haven't mastered them though, how would use these concepts to see if its worth it?
I believe for example the NOI/cap=value or price of property. So if NOI was 15k and i wanted 8% cap, the value would be 187k. I'm probably estimating my NOI incorrectly, but is that how id do it? And howabout cash on cash?