First possible deal Wichita, Kansas
Multifamily converted house with a small 1 bed/bath house in back yard. Small house is 1 bed/bath and needs about $5000 (according to seller, so $7500) to get up and running. Rented previously for $375. Other two units currently rented for $450 and $375.
Price: 59,900
Monthly Income: $1250 (according to seller) I think it's more likely $1325
Monthly Expenses: $50 - Insurance, $75 - Taxes, $20 - Trash, $504 Variable (maintenance, vacancy, water, capex, management) - $649 Total
Monthly NOI: $551
Financing: 30 year fixed @ 4.375 and 25% down - $239
Monthly Cashflow: $312
Those numbers assume the sellers numbers are correct for rent. Obviously it gets a little better if I am right. Also, I'll have the cost of rehabbing the 1 bed/bath house as well as well as lost income while it's being fixed up. I would probably get a HELOC to cover those costs.
Feedback please.