Posted by Jim Rayner on June 08, 1999 at 16:27:40:
You have not provided enough information for a well informed opinion but I will take a shot at it Working the deal backwards from the income of 800 per month and allowing for a very minimal expense allowance of 30%( assuming separate tenant paid utilities) and a 5 percent allowance for vacancy factor , and figuring 90%ltv @ 8.625 30/30 financing the maximum I would consider paying is 55K. Anything higher just would not be worth my time and effort.
Now the problem is : is the property worth 55K?
Is there any deferred maintenance
What are the real expenses
What is the real vacancy factor
What is the real market rent values
What are comparable properties selling for
Do you really want to be a landlord