Check my numbers..
I've run the numbers several times, changing different sections to see how it would affect the deal. I just want to get everyone's input on it. If it were you, would you buy it?
So here's the details.
6 unit building in a blue collar area. The street it's on, I would say, divides a not so nice part of town from the best side of town. All 2 bed, 1 bath apartments. Each unit will rent for 650 a month, tenant pays all utilities.
Purchase price = 180,000.
Gross monthly- 3900, 46,800/yr
Taxes= 4263/yr
Insurance~ 1500/yr
I figured 15% for PM so 7020/yr
Another 5% vacancy = 2340
10% maintenance= 4680
NOI= 26,991
Putting 20% down, the balance over 20 years at 6.5% is 1073.63/ month. Using these numbers, I came up with 1169 a month and 14031 a year cash flow, after mortgage. Any numbers you see wrong, please correct. What is your opinion on this deal?