I’m looking at a 3 unit this week and here are the numbers as I see them so far. It’s priced dirt cheap, but I think that is a combination of work that needs done, as well as the high taxes on the property.
Assessed value is $129k (usually about 25% low)
Purchase price $29,000
Estimate $30k rehab (10k per unit) Will find ouRt a solid estimate this week when I see it
Total acquisition costs: $60k
Yrly taxes are really high currently - $7k - not sure how much they will drop with a mortgage exemption
Rents should be around $650 at least.
Each unit is 3bed 1bath and about 1100 sq ft.
I understand how to break it down according to the 50% rule, but would like to know what you pros think since I know what the property taxes are going to be and they are so high.
Our county here in Indiana has some really ridiculous tax assessments in certain pockets and areas. Some areas, aren’t bad; others may have $3000 worth of taxes for a house in a low income area that no investor would pay anymore than $15-20k for.
That’s what good the local government here does for us…
Yeah, Keith - and it’s a big blue spot right over where I live and invest. It’s all that dirty Chicago influence coming over into our area politics. There was a big bust the other day involving the police chief and a bunch of officers, over some alleged drug ring indictment where they held the supsects and beat them for an extended period of time…good ole chicago politics are spreading…
yeah, it’s vacant. I talked to listing rep about viewing it and he sent me a mold release of liability form from HUD to sign - and I’ve been told there is a mold issue in the lower unit, but I haven’t been there to see the extent of it yet.