Somehow I didn't see this section and posted on the wrong section, my apologies anxiety and lack of patience will make people do strange things!
Here's the deal. Duplex in a decent area, not hard to find renters. Haven't seen the units yet but per seller sayshave passed city inspection for rentals, one occupied the other one vacant. Lanlord pays water and tenants electric and gas. Both units have central air and furnace (have to make sure they're separate) water is on one meter. Per the seller the only thing that needs to spend money on is separating the water meter.
Rent total for both units/month: $1,625
Another issues is that it's a short sale, per the seller the price is what it appraised for. If this deal works for me my only option is FHA but I'm tied up with another property doing FHA so it might be a family member or maybe some other creative financing option. I would be managing the unit by the way.
I downloaded a spreadsheet calculator and here's the breakdown. I'm including 10% PM even though I would be managing the property, should I have excluded it? Thank you very much in advance!
I evaluate all properties assuming that I will pay for property management. I do this so I am comparing apples to apples with different properties.
Based on rents and cost of property it looks good.
Thanks for the advice Bill, I'm beginning to realize that I might have to go with creative financing, so I'm going have to rework the numbers and might have to see if I can get a lower price.
Originally posted by @Roy Gutierrez :
I'm including 10% PM even though I would be managing the property, should I have excluded it?
Good call on including the property management. You may be managing it on your own now, but circumstances could change and you may change your mind in the future.
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