Posted by Tim Fierro (Tacoma, WA) on February 06, 2002 at 23:41:31:
If you bought this for $1150 a month, and your gross rents are $1200 a month; you will clear $16 per unit to be the property owner, manager, plumber, carpenter, etc…
Really, not a good deal.
What we don’t know is if the $400 a month per unit is lower than market rents and they can be raised. You need to determine the buy price and figure out the expenses and determine your max debt payments you can do. You don’t give us the property value, the expenses, and if these rents are low or high. Vacancy rates and actual expenses would be a good thing to have also.
You don’t give enough information and for only $16 per month per unit, how will you pay for apartment 1’s dishwasher when it goes out? There goes 6 month’s of cash flow.