$50k purchase price in a solid blue collar/working class area.
Gross from both units= $1300
Building seems to be pretty updated so I figure $2400 per year in maintenance?
I think your maintenance figures are high if it is in good shape.
Now calculate your monthly PITI and add up your monthly expenses including cost for a PM and see what kind of cash flow you end up with. At first glance I expect this to cash flow very well.
If you dont know how to do this just ask and I will help you, but try first and myself or someone else will correct your math mistakes if you miss something.
@Mike Wallace How are the big ticket items looking? Roof, water heater, HVAC systems, windows, electrical.
If those are updated it looks like a pretty good deal to me. What kind of debt service are we looking at here? Buying it all cash? Pulling a mortgage?
@Chris Adams makes a good point. If there isn't a good amount of deferred maintenance you monthly maintenance figure are probably a little high. If the numbers work with that being the case, even better.
Is it currently rented, what are comps (rent and sales), how is the neighborhood (day and night), who's doing maintenance and management, can the water be billed to tenants, can mowing and snow be done by tenants, etc.? Seems like it possibly could make the 1% rule, to me borderline depending on the answers to above questions.
whats the 1% rule?
It has over 2% of gross rent per month of purchase price...
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