I am interested in buying a multifamily to hold and rent out. The place I'm looking at is currently at $166,000 and recently completely rehabbed. All three of the units are rented out for a total of $2700 a month coming in. There is two 1bed/1baths and a two bedroom one bath. All the units are under lease until atleast June next year. I have about 20,000 to put down as a down payment so the monthly mortgage included taxes, pmi, and principal will be right around 1000. Should I work on pulling the trigger on this place?
Have you plugged in the numbers to the calculator on bigger pockets?
Have you taken into account maintenance and vacancy and property management?
$2,700 a month on a $166k purchase sounds great on the surface.
Make sure you're including everything in your numbers though not just PITI.
You also need to account for CapEx, Maintenance, Property Management, Vacancy, etc.
I have not used the calculator yet but will run the numbers on the when I get home from work.
I have figured in most of that but I'm not sure how much rehabbing between renters will run because I'm able to do all the work myself. I know it will vary depending on the tenants, but what is average for a 1100 sqft apartment?
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