Noob here… Would this be a good deal ? - Posted by TKinTX
Posted by TKinTX on May 03, 2006 at 13:40:31:
My first post… First, I have to say “Thank you” to all of you. I have been reading the forums and articles here for a couple of years, thinking, looking, watching MLS, etc… Joined the local REI club, and I am closing on my first SFH with some partners on Friday - we’re getting our feet wet and spreading the risk on this one.
While that’s going on, I’m also still looking and I wonder if this would be a good deal?
Four duplexes asking 520k ($130k each if bought separate). i know this would not be a good deal, per se.
I’m thinking of offering 420k for all four. i think this would be a good deal, but I’d expect them to counter in the middle, so let’s say 470k for the high end/cutoff.
I am assuming $0 down NOO with FICO in 680 - 710. (so probably around 8%)
Monthly gross: 5075
Monthly HOA: 148
Monthly Tax: 522
Debt (PI): 3100 to 3500 (est. based on $420k - $470k)
Cash flow: 900 to 1300
i haven’t looked at the place for maintenance, etc. Any good ballpark on what to include %-wise?
i’m just running numbers and thinking about an offer.
also, i think i can bump the rents up if i allow Section 8, which I intend to do. not a lot of appreciation in the area, but lots of renters.