Feedback, thoughts, idea's
Hi BP community!
Just wanted to get some feedback on a potential investment I was looking at
Facts: 2 family (4br + 4br) / students / Always rented / 2500 sf of living space, house is in very good condition a great deal of remodeling has occurred in recent years, new kitchens, bathrooms
Gross rents $3680.00
Expenses: taxes (currently $4360.00 + Insurance, water, maint, misc (total $950.00)
NOI: $ $32,760.00
Debt Service ($176,00 @ 4.25% - 30yrs) $866 / monthly ($10,392.00 / yrly)
Net Income $1864.00 / monthly - ($22368.00 / yrly)
Cash invested: $44.000 down + $5,000 closing - $7200 Security deposits = $41,800.00
Cash on Cash Return" $22,368 NI / $41,800 cash invested = 54%
Gross Rent Multipler ($222,000 / $44,160) = 5.0
Cap Rate ($32,760 NOI / $222,000) = 14.9
These numbers were provided by the current property owner, I hoping for such insights that I might not be considering, any concerns.
Thank you all for any insights, thoughts or concerns.