Updated about 12 years ago on . Most recent reply
2 Family Rental Analysis
Looking for that 2nd investment property. Came across a 2 family that needs quite a bit of work but I'm in love with the location.
Here my analysis put together... would like some opinions, or advice if I'm missing something
Purchase Price - $50k
Repairs - $40k
Monthly Mortgage Payment w/interest - $260
Property Taxes - $290
Insurance - $150
Heat - $200 (currently setup to share heat off of one boiler, so would have to include heat in rent)
Maintenance - $100
Monthly expenses - $1,000
Rental Income
Unit 1 - $600
Unit 2 - $800
Monthly income - $1,400
Thanks ahead of time for the advice!
Most Popular Reply
I'd like to use the 50% rule to evaluate this. Do the tenants pay for water/trash? What about Lawn Care/snow removal? That adds to the expenses just like the heat bill does.
Although I don't feel like getting a 4% 30 year loan is a possibility right now, we'll use that number.
$1400 * 50% = $700 - $200(heat bill) - $430 (Debt service ) = $70
$70 / 2 Units = $35 each unit.
That would be not factoring in water/trash/lawn/snow.
Again, this is just a quick run through. I'd say at that price, the deal is too slim for me to keep as a rental. If you didn't have to pay the heat bill, that would be a different story!