What do you guys think of this:
3 duplexes (6 units) for $242,000
1031 exchange allows me to put $60k down
finance $182k = $1272 (7.5% fixed loan)
taxes = $ 155
insurances = $ 150
Total = $1577
Rent = $2750
5% vac = $ 138
maint = $ 350
mgmt = $ 330
Total = $1,932
It looks like I need to put about $8k into these units for paint, carpet, etc. and I will manage these units myself. The tenants are all month to month, but 3 have been there since 1999/2000 and 2 more since 2002.
Any/all comments welcome!
Those numbers look good. On the financing end, are you going stated or full doc. If you are going full doc 7.5% seems a bit high.
I am going full doc. I think I can get 7% (maybe lower) with a credit score of 750, but I wanted to be conservative going in.
Does this deal look good? Since all 6 tenants are month to month, should I immediately get them to sign 1 year leases or wait a little while. Pros/Cons???
Thanks for your replies!
well once there month ends ask them to sign the 1 year lease. Shouldnt be a problem since most of them have been there for atleast a few years.