Hi all, I have been reading this newsgroup for several months and learning a lot.
I have found a possible deal, and I want to get the opinions of those wiser than myself (i.e. everyone here).
FSBO, owner moved out of state and wants to sell 3 condos.
Asking: $100K for all three.
3/1.5 - rents for 725
2/1.5 - rents for 625
2/1.5 - rents for 625
Currrently occupied by 2 Section 8 tenants and 1 FEMA (hurricane evacuee).
I figure the following cash flow analysis:
Income: $1975
vacancy @5%: 100
management @8%: 160
insurance: 50/unit=150
taxes: 300
maintenance: 50/unit=150
P&I: 700 (assumed 100% financing at 7.5%)
NET: $415/month positive cash flow.
My newbie questions are: Am I missing anything? Have I left out any “gotchas”?
The biggest fear is, of course, some huge deferred maintenance cost cropping up. Three units and three tenants means it’s only a matter of time. But fears, real and imagined, have kept me from doing any deals so far.
Thanks in advance for your advice on this.