Posted by JohnBoy on March 10, 2001 at 18:39:49:
That would give you $8k in EQUITY, not in your pocket. That $8k is on paper, not in cash until you resold and cashed out, which of course would eat most of that up in selling costs!
You don’t give any numbers on this other than the asking price and stating it will cashflow at $500 per month after all expenses. How do you KNOW it will cashflow?
What does each unit rent for?
What is the complete breakdown on all expenses?
How much would you be financing? At what rate? How many years?
Was this appraised by a certified appraisor or this what some realtor appraises the property at?
What have other properties like this one SOLD for in the area, not asking prices…actually SOLD for?
Does this property need any work or updating? If so, what will it cost to get it up to snuff?
You need to give MUCH more details on this to determine anything.