Making First Deal Need Help & Advice - Posted by Robert

Real Estate Investing
#1

Posted by Robin Jean Buchanan on January 25, 2002 at 08:54:50:

I am not sure if I am doing this right, but I need help. I want to invest in property in the Sacramento Area in California, I can pay cash, no mortgage. Thinking of duplex or triplex. At the end of the year, how does the tax situation work? Since I have no mortgage, what expenses do I get back, like the property managment services, property taxes, homeowners insurance, repairs, what do I get back at the end of the year? What are the property taxes in Sacramento California on a property about 250 thousand?If I pay cash, (need to, credit has been distroyed through divorce) how do I support myself through a investment property?
Thanks for any help
Robin Jean Buchanan at: robinjean8@aol.com

#2

Making First Deal Need Help & Advice - Posted by Robert

Posted by Robert on January 24, 2002 at 15:49:35:

I am in the process of making my first real estate investment. The investment is an 8 unit apartment building in NJ. The cash flow looks like this:

First Mortgage (80%) - $1585 / month
Second Mortgage *20%) - $640 / month
Taxes - $267 / month
Insurance - $50 / month
Property Management - Not sure how much this is, can anyone help

Rental Income - $4300 / month

All apartments rented but no leases. Payments are made month to month. Looking for comments on how to remedy this.

Apartment building is on the Jersey shore only 2 1/2 blocks from the beach.

Loan being acquired via a company called Advanced Mortgage Concepts in PA. This is a mortgage broker. Could somebody explain typical commissions for brokers like this and who pays.

With the exception of closing costs and broker commission this truly looks to be a no money down deal with anywhere from $1800 to ??? monthly cash flow depending on the price of property management.

Am I missing something? Is this a good deal or am I about to lose my shirt. Since this is my first investment I am very nervous but I am moving forward with the apraisal and inspections anyway. Also, can somebody tell me if I should get an appraisal done and then make an offer or is this not standard procedure.

Thanks for any help