Analysis of NH Rental Prop

[Brian Ristola]

Just doing some lurking on the MLS to see where the 'market' is at:

These are some of the numbers on a 4 family that appears to be in decent shape..nothing special and fairly average

2006 Taxes: $4,187.00
Insurance: $991.00
Heat: $3,691.00
Utilities: $215.00
Water/Sewer: $471.00

Total $9500 - yearly expenses

Asking price = - $260,000.

If financing 100% ( I like to use this for calculations), cost of the mortgage would be $18700/year at 6%.

9500 + 18700 = $28200

rents - $700.00 $675.00 $675.00 $520.00 = $30840

So roughly max $2640 income projected/year. No PMI or Maintainance figured in....and I am being optomistic regarding financing rates.

What I do not get, is this: Realtor writes the listing as a great investment property. This is in a market where multis do not appear to be moving, lots on the market, and general RE prices are dropping.

Unfortunately, this is very typical. How can this be referred to as a great investment property? Who are they hoping to fool?