Hi everyone - thanks for reading. I am trying to figure out if i should go for this one or not. I have been looking for sometime now and reading all your great stories.I Would appreciate some input on this one…
4 Unit house in CT. All one bedroom apts . Total 3050 SQ ft
Move in condition for the most part.
New heating, hot water ( each apt has seperate ones), Newer roof siding etc etc.
Previous owner has kept up with maintenance - so its not in bad shape. about 50% widows replaced. Over the next couple of years the other 50% need replacment
tenants pay heat/hot water and electric
I pay water/sewer
Cost - $400000
rental income - $39600 ( Less one months vacancy)
est. annual operating expenses $7775
I am looking at 320,000 in a 30 yr mortgage, 80000 on an Existing HELOC that i have at prime -.5
Is this a crazy approach?
I know this is not a fantastic deal in terms of buying at a huge discount, however its not over priced in the area
If you have worked your numbers and it is in the plus column including allowences for deferred maintenance and vacancy I say go for it. If you want to buy and hold there is nothing better than letting your tenants fund your retirement fund.
I know this is not a fantastic deal in terms of buying at a huge discount, however its not over priced in the area
You are right, this is not a fantastic deal. In fact, it is a TERRIBLE deal. It doesn’t matter whether a rental is “not over priced” for the area. What matters is whether it makes money or not (as in this case).
The original post stated $320,000 in a 30 year mortgage. Granted, this may not be a huge deal to you but if you are going to throw numbers around you should use the right numbers. It gives a more accurate picture of the scenario.
its in danbury area. interest from property manager is at 8%. I am not sure that i will be paying that level of interest - 1 pecent makes a big difference.
To me it looks like barly break even. I wam curious if i am missing any thing
thanks for the input - its alot of money down to get any sort of cash flow, while i have cash - not sure i want to spend it like this… not the smartest move…