pleae take a a look at this deal

[CDM]

Hi,

I have been absorbing all the information of this site for the last while now; thanks to many of your posts and me doing allot of book reading/research I am finally ready to make my first offer!-

If anyone could review my deal to make sure I have all my ducks in a row that would be appreciated.





4 plex very nice condition(compared to most I’ve seen)

Near hospital, transit, parks

Area supports the rents as I have researched the area

3 tenants have leases, 4[sup]th[/sup] is owner/landlord



Price 270,450



Total income $36,600

Minus vac -10% (hope not) -$3,660

Total $32,940



Expenses Annual



Taxes $2,845

Insurance $900

Hydro $1,080 this is the landlords now, so it will probably go to the new tenant

Maintenance $1,440

Property Man $3,600 – estimation? Help here please, what should I expect

Fire inspec $ 300

Heating electric included with their hydro bills tenants pay.

Advertising $600



Total -$10,765





NOI $22,175 12.19 Cap?



Mortgage 250K

Payments $1,192x12 = $14,304



Cash flow after payments $7,871/12 = 665.91/4 = 163.97 per unit



Good deal?



TIA

 

[Thomas Beyer]

QUOTE (CDM @ Nov 23 2009, 03:56 PM) ..

good deal ?

yes, if rents are sustainable and area/city does not deteriorate !

check main elements that could be expensive: roof, plumbing, structure, decks, windows ..

 

[Nir]

numbers are good. just curious - why is he selling if it`s such a good deal? why 10% vacancy? none of the top 10 cities have such high rate. (where is it?)

 

[MarkTorgerson]

QUOTE (CDM @ Nov 23 2009, 03:56 PM) Hi,

I have been absorbing all the information of this site for the last while now; thanks to many of your posts and me doing allot of book reading/research I am finally ready to make my first offer!-

If anyone could review my deal to make sure I have all my ducks in a row that would be appreciated.





4 plex very nice condition(compared to most I`ve seen)

Near hospital, transit, parks

Area supports the rents as I have researched the area

3 tenants have leases, 4[sup]th[/sup] is owner/landlord



Price 270,450



Total income $36,600

Minus vac -10% (hope not) -$3,660

Total $32,940



Expenses Annual



Taxes $2,845

Insurance $900

Hydro $1,080 this is the landlords now, so it will probably go to the new tenant

Maintenance $1,440

Property Man $3,600 – estimation? Help here please, what should I expect

Fire inspec $ 300

Heating electric included with their hydro bills tenants pay.

Advertising $600



Total -$10,765





NOI $22,175 12.19 Cap?



Mortgage 250K

Payments $1,192x12 = $14,304



Cash flow after payments $7,871/12 = 665.91/4 = 163.97 per unit



Good deal?



TIA

Awesome deal! Just make sure you know the area and if you can keep the rents up. Does the area have good economic fundamentals that will sustain into the future?
Sounds like a small town based off of your information which you would require a high Cap Rate. You are most likely high on your vacancy estimation and your property management. This is OK though for budgeting purposes. It`s better to be high.
Go for it.

 

[housingrental]

CDM = Is this deal in Windsor ?

 

[westboundventures]

QUOTE (housingrental @ Nov 23 2009, 08:20 PM) CDM = Is this deal in Windsor ?


I`m also very curious to know what town this deal is in. Cap rate seems way too high for most towns unless the owner really has no idea what the building is worth or there are some major hidden problems