need help with a deal i am looking into
Hello and thanks for your help
i am looking at 2 due plex in Georgia they are selling for 59K for both not each 59K total i am going to put down 8K owner if holding the loan at 8.5% for 8 years i have called a property management and they say i should be able to rent the 2 bd 1 bth for 400 a month(they are all 2bd 1 bath total of 4) that would be 1600 a month 2 are already rented at 400 and 300 this one seller is going to move up at end of lease i am thinking these are the numbers
rent 1600 minus
160 management minus
68 ins minud
700 mortgage payment minus
71 second loan on the home minus
100 taxes minus
100 maintinance and repairs
that should leave 401 for me is this a deal what else should i do before moving forward i am in California
Most Popular Reply
You want to know everything management is going to charge rather than just the 10% fee. Many PM's charge for advertising as well as lease ups which can run anywhere from 1/2 of first month's rent to all of the first month's rent. Are there renewal fees also? Those costs will greatly change your assumptions because when averaged out they can be right around 20% of the gross. Management will make or break your success on a property.