All Forum Posts by: Nitya Gospel Jetson

Thank you William and Greg. This will be our second property, so want to be careful in choosing it. The appreciation in the area is not that great (2.2%), the property is a historic property built 1890s and has been a student rental forver.

Greg, Thanks and appreciate the advice.

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Looking at a co-invest opportunity with a friend on a University Student rental property. Its priced at $480k, the portfolio lender has offered a 5% rate for a 20-year loan with the rate being revised every 5 years (need to confirm cap). The property is a 7 unit space - currently rented for $5710 a month.

Assume we do 25% down, below are the numbers. Is this too low of a cash flow to be making this effort for? Any guidance appreciated

	Monthly
Income:	$5,710.00
Mortgage Pay:	$2,375.84
Vacancy (8%):	$456.80
Management Fee (10%):	$525.32
Property Tax:	$1,333.33
Total Insurance:	$250.00
Maintenance Cost:	$166.67
Other Cost:	$16.67
Cash Flow:	$585.37
Net Operating Income (NOI):	$2,961.21

Downpayment - 25% ($135,000) roughly will all cost, Mortgage the rest.

For the 20 years invested

Return (IRR):	15.76% per year
Total Profit when Sold:	$1,059,203.90
Cash on Cash Return:	861.14%
Capitalization Rate:	7.40%
Total Rental Income:	$1,524,478.87
Total Mortgage Payments:	$570,201.76
Total Expenses:	$569,651.94
Total Net Operating Income:	$954,826.93

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All Forum Posts by: Nitya Gospel Jetson

Nitya Gospel Jetson has started 1 posts and replied 3 times.

Post: First Commercial Property - Thoughts Appreciated

Post: First Commercial Property - Thoughts Appreciated

Post: First Commercial Property - Thoughts Appreciated