Any thoughts on this deal?
12 Unit 3 storey residential near Windsor, Ontario, Canada
Asking 370,000
11 2 bed units currently rented @ 575
1 1 bed currently in need of rehab 5-10 thousand(fire damaged)
Income: 75,900-3,795(5% vacancy)=$72,105
Expenses: $45,900
Taxes 13,600
Maintenance 7,500
Insurance 7,000
Utilities 20,500 (electric heat)
Management5% 3,600
Net Income= $26,205
Total repairs estimated @ 75,000 (rehab 1 bed unit, reshingle roof, install new secured entranceway, and cosmetics through out building)
Potential Income after repairs, rental increases 93,740-5%vac=$89,153
11 units @ 645 85,140
1 unit @ 550 6,600
Laundry Income 2,000
Change over hydro (there are seperate meters)to tenants and save on utility costs 15,000
Taxes 13,600
Maintenance 7,500
Insurance 7,000
Management 4,500
Utilities 5,500
Total Expenses $38,100
Net Income $51,053
230,000 assumable first mtg.@5.71% paying 1750 due in 1.5 years