All Forum Posts by: Laura B.

Utilities are paid by tenants, and its not in a rent control area. Can't do anything about the taxes. I don't know that I want to leverage into 2,500,000, or get involved with other investors. I'm old already and would like to leave something of value to my kids. These houses are really nice, in a great area of town with amazing views, and they are about 2 blocks from where I live. I was considering living in one of the apts and renting my SFH for more income.

I guess I'm asking if its a really bad risky investment that will be a money pit, and my biggest concern with that is the age of the houses. Inspectors don't look behind the walls at electric or plumbing and you never know what you might find. And would I be better off spliting up that money and investing in multiple less expensive houses? Also, what would be a reasonable price for this property?

I just did a cash flow analysis and came up with a monthly cash flow of $1444.09, so $17,329.08 a year.

Here are the numbers :
Cost $1,000,000 (asking price is (1.3 mil)
Down pmt $250,000
loan 30yrs @ 5.5%
Ins rate .6%
Maint $500 month - is that way too little considering the age of the property?

So PITI $7508.41
Maint $500
rent after vac $9452.50

I don't know, seems like I'll be playing with a lot of money but not making much, if anything. I will have to deal with the insane taxes for any property anywhere near where I live, a shack on a 1/4 acre will pay around $10,000 yearly taxes. Two hours in any direction will still have the same insane taxes. Should I just give up on the idea of real estate investing?

I am looking at 2 properties on that are side by side. They are both 4 unit multi families that are 100 years old. They appear to be well maintained and are fully rented. Together they bring in about $119,000 a year in rents, but expenses are really high. Property taxes for both together are $33,000 yearly. That, along with other expenses like insurance, landscaping (the properties are on 3/4 acre each), maintenance, and property management, and of course the huge down payment and mortgage expenses, have me hesitating.

What would maintenance costs look like in such old properties? What should I be looking for? What about electric and plumbing, is there any way to know whats behind the walls?

I would like to have some cash flow, and run in the black. What would be a good price for these houses? Thanks for any insights.