Posted by JohnBoy on June 06, 2000 at 10:54:07:
You need to verify those gas bills being paid by the landlord. Account for vacancies, repairs and maintenance, defered maintenance, advertising costs to get new tenants, etc.
The defered maintenance is things like a new roof, furnance, A/C units, etc. You take the average life expectancy of this items and divide the replacement cost over the number of years it will take until they need replacing. Then you need to figure that amount to be held out from the monthly income each month so that money is available when the time comes to replace them. If any of these items will need replacing soon, then account for that cost in the purchase price. Based on the income your showing, that couple of hundred could get eaten up pretty quick. Do your homework on this!