First Rental Property - 6 Unit 120k
I've had good success flipping 2-3 properties a year to supplement my income. I'm ready to start creating some passive income with rental properties. I can buy 2 identical 3 units that are side by side, all 2 bed 1 bath renting for $450 each (section 8). They are currently all rented on 1-year leases, tenants pay utilities.
Total expenses incl. taxes, insurance, grounds maintenance, etc. =
$6560/year 547/mo
Gross Rents = 6 Units Rented $32400/year $2700/mo.
Net = 25840/year 2153/mo (6 Units) $20440/year 1703/mo (5 Units)
Debt Service = 1000/mo (100% financing, 20 year term)
Deferred Maint = 450/mo
= 700/mo cash flow (6 units rented, which is what it is now) 253/mo (5 units rented)
Deal or no deal? Thanks in advance for any wisdom and/or insight!