everytime i work up numbers on deals in my local area i am consistently running into a VERY SLIM to NONE scenario in terms of cash flow.
i have to tell you. this ain’t easy.
whether it’s Lease Optioning or whatever…it’s just not good here.
even if i do a lease option, which i was just considering as my first deal.
it was:
a two family with the rent costing me 2700
270 to be applied to price
could probably rent each for 1900 = 3800
it looks pretty good, only thing is
monthly taxes = 380
h/o insurance = 225
that’s over 600 right there, leaving me less than 500 to work with to figure vacancy expenses and other property management expenses, not to mention utilities. Even if my utilities were 0 (tenant paid), this deal would be RAZOR thin.
oh the price of the unit was 475,000
2 - 4 year lease option - i would sublet of course.
it’s a good situation because the seller has no current mortgage, it just doesn’t cash flow.