Updated over 6 years ago on . Most recent reply
5-Condos Deal Analysis. What Would you do?
I found an investor who is looking to get out of the business and wants to sell 5 condos. He wants $425,000 for the 5 and generate $5570 income. 2 of them the rent could increase a little $50 each. They are all rented at the moment. Here is the break down
Monthly Income: $5570
Monthly Expense:
Taxes: $593
HOA: 1250
Vacancy: $278
Cap Ex: $278
Managment: $445
Mortgage $1,559
Total: $4,681
Monthly Cashflow $889
Cash on cash return of 9.61% with 25% dp
He said the HOA fees are increased this year and will go down next year for a total of $1000. This calculation is with the increased fees. HOA covers insurance, water, garbage, sewer, and snow. If the HOA fees drop that will put me at $981 monthly cash flow and 11% cash on cash return.
What do you guys think? I do plan on talking him down and hope to buy it for around $400,000. Did I miss anything?