Asking $379,900 and I’m going to try and get it for $325,000. If I can finance $325k (purchase at $425k with allowance for repairs, etc., netting $325k to seller), what rate would I expect to pay. I’ve assumed 8.25% - 30yr. , so about $2450/month. Could easily raise rents to $800/mth+ (section 8 approved property, $875/month allowable rental rate), and get rents for garages as well. Does this look like a possible deal or am I barking up the wrong tree?
I used 5% as vacancy. Maintenance was provided in the realtors package. As for the utilities:
The tenant does pay for the cooking gas as well as the elec in their apartments. The owner pays for taxes, outside and common area electric, all heat for the building, water, sewer, insurance, alarm, and trash.
Where is this? A 5% vacancy rate contemplates about 18 days a year (per unit) of vacancy. What is the vacancy rate in the area? If you lose a tenant, can you: Turn the property around, advertise it, and get a tenant in the place in about 2 weeks?
Usually 5% vacancy is in an area where rentals are hard to find and rent very quickly…an average vacancy rate is 10%…
This is a suburb of Philadelphia. The building’s section 8 approved, and the county seat is very close to the property. I have some connections that can get section 8 tenants placed quickly inthe property if I don’t get the vacancy filled personally. However, there is quite a lot of section 8 potential to fill the place (it’s actually about $850/month/ 3bd unit with subsidies if I go that route. I’ve already thought about getting the whole place filled with section 8 to get the increase in rents. It’s obviously a trade off between the quality of tenant and the $.