Updated over 11 years ago on . Most recent reply
duplex with section 8 tenants (staying)
i am going out of my comfort zone here, but here are the numbers (they dont lie).
Brick duplex on a crawl space (never seen one before. seen either vinyl or wood)
2 section 8 tenants (7 yrs, 5 yrs)
asking price $75k (assessed value at $29k)
current rent - $1,400/month = gross - $16,800
insurance (guess) - $100/month (could be more) = $1,200
taxes - current year - $2,500 (most have been $4k)
will have to use PM since it's 30 mins away - $150 per month
Repairs - $100 month (average)
no immediate repairs, they seem to be happy living in clutter and nicotine discolored walls
according to @Joel Owens formula:
gross rent - $16,800
NOI = 16,800*.4 = $6,720
CAP = $6820/75k (asking) = 8.96
it's a C area, but not warzone. that whole town is that way. it reminds me of flint (great at one time), but without the crime.
Basic formula:15 yr ammortization, 5.25% apr = ~$466,
expense of P&I + PM+repairs+insurance+taxes (current) = 466+150+100+100+208 = $1,024
Rent = $1400
Profit = $376 = $188 per door