Hello, I am looking at buying my first property and I was wondering if someone could run the numbers on this multi family for me? I have tried to do it with a spreadsheet I downloaded from here but the operating expenses were way off. Thanks for the help!
Any advice would be greatly appreciated.
How much is it currently renting for? It says "Neighboring units rent for $795 per month." which could mean it sits next to apartments that are nicer.
Don't know the area but I wouldn't pay $265,000 for a rental that only brings in $2385.
Using the 2% rule your property is a little less that 1%.
That is is good point. I was assuming they were renting it for $795. I wouldn't pay that much. I was thinking around the $240,000 range. There is only a few multi families that are on the market in my area. This is the second one I have seen in my price range in 6 months. Thanks.
Definitely need more information to run the numbers. In regards to the 2% rule, if I used that for any property I had interest in nothing would work in my area.
It looks like they have been trying to sell this property for years. I agree that the price is high - rents would need to be 2x higher to be attractive.
Don't buy something just because it's the only property available in your price range.
If your planing on using property management I'd look for multifamily property anywhere other than the west coast. So much more cash flow in the south and midwest.
I always thought it was better to start locally with your first purchase. I have been looking all the time but haven't found anything worth pursuing. Thanks.