Is having a Positive Cash Flow Based RentalProperty A Bad Thing?
"The value of the selling NJ Off Market 6-Unit Rental Property and the value of it now are based on the cash flow and conditions," according to the Realtor (in PA) attached to the NJ Off Market 6-Unit Rental Property. NJ Off Market 6-Unit Rental Property is selling from (Fix & Flipper) who is the Seller. The following numbers are also provided by the Realtor attached to the selling NJ Off Market 6-Unit Rental Property starting with it's Total Monthly Rent [with Rent including supplemental heat price]: Apt 1 Rent Price for $825, Apt 2 Rent Price for $975, Apt 3 Rent Price for $975, Apt 4 Rent Price for $1,200, Apt 5 Rent Price for $825, Apt 6 Rent Price for $975. Also includes (2) Garage Storages Priced at $100 each + (4) Basement Storages Priced at $50 totaled at $200=$6,175 in Total Monthly Rent with Yearly Gross Income=$74,100 - Expenses listed (Insurance cost at $1,800, Water cost at $1,500, Sewer & Trash cost at $700, Common Electric cost at $300, Supplemental Oil Heat [6 months *$300=$1,800], Taxes cost at $10,500)=$16,600 (Total Expenses). $57,500=(Net Yearly Income). Cap Rate=11.52%
| "There was no cash flow for the selling Off Market Rental Property for years, the owner let property slide. Now it has been rehabbed. One property in exact 0.5 miles (1 block away) of the Selling Property has sold for $840k for 12 units--$70k per unit and looking at the income it has small rents and small apartments, another property within the 0.5mile radius has sold for $490k with lower income because of high expenses. Seller that rehabbed the 6-Unit Rental Property has paid $200k prior to rehabbing the Rental Property. The selling Rental Property was previously a mess and needed lots of work. Was built 1900, all stone foundation. Lot sz: 61- sg feet, livable space is 3500 sg ft" according to the Realtor attached to the NJ 6 Unit Off Market Rental Property. Does the Buying Criteria for this NJ Off Market Renal Property qualify as a good investment for $525,000.00 |