I have opportunity to purchase a single family 3BR 1.5 BA 1610 Living area with a tenant already their paying $900 per month. The asking price is $65,000 for the property. I have a banker that will do a 100 percent financing at a interest rate of 5.75 for 30 years. What do you think about this deal. Is there anything i'm missing for as expenses? What do you think about this deal?
Insurance & property Taxes $150 per month
Property Manager $90.00 per month
Vacancy - $45 per month
The numbers look good. The question are there any deferred maintenance? You profit margin won't be high. So new systems (roof, water heater, etc) will put a huge dint in your margins.
I haven't been inside yet, but from the outside the roof,exterior looks good. I will be looking at the inside this week. I was thinking of offering around 45,000- 50,000 after I look at the inside. What margins did you come up with?
First, nice to meet you, secondly, I love numbers. I came up with this rather quickly so I apologize for the format.
Cost of investment at listed sale price is $544/month or $6,528/year
Gain from investment is $900/month or $10,800/year
Your remainder (profit is $356/month $4,272/year or 0.65% ROI
That's the numbers, unfortunately I can't offer any other insight because I'm not from your area, don't know the neighborhood or the property's appreciation potential. Hope this helps!
sounds like a pretty fair deal. in s. Carolina the property taxes double when it's not your primary residence. make sure that the property tax numbers you are going by are based on it being a rental property. best of luck!
Thanks MJ, I think now we have to take eexpenses out of the $356. So if you figured $900 x.50 corn expenses you're left with $450 to service the debt. If you figured $65000 at 5.75 for 30 years plus taxes,insurance you at $544. Which will not cash flow, So I'm trying to ffigure out what the most I should I pay for the property including renovation of about $10,000-$12000
Thanks MJ, I think now we have to take expenses out of the $356. So if you figured $900 x.50 for expenses you're left with $450 to service the debt. If you figured $65000 at 5.75 for 30 years plus taxes,insurance you at $544. Which will not cash flow, So I'm trying to figure out what the most I should I pay for the property including renovation of about $10,000-$12000
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