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Rate my deal!

D

DOZAH

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Nov 2, 2008
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Please give your opinions.Appraisal price $140,000Asking price $139,000Purchase Price $130,000
20% downpayment $26,000
Closing costs $2600

Mortgage $104,000

Monthly Gross Rent $1500

Expenses (monthly)

Taxes $190
Insurance $85
Maint/Capital expense $225
Management $150
5% Vacancy $75

Total Expenses $725 month

Net Rent $775

Mortgage payment (P+I) $482.84

Monthly cashflow $292.16



This is a legal duplex with seperate metres (tenants pay util.)
It was built in the early 1990`s but is in need of maybe $5000-$6000 of lipstick renos.


I appreciate any and all opinions and comments
Would you buy this?
 
The unknown is how accurate your rent is. More property specific details please!


The numbers look ok.
 
Sounds like a good buy. Make sure that your numbers are realistic for your area. If it is leased out already get a copy of the leases. If not take out a couple of ads and see what kind of response you get at that price.

Lastly, where is your market going and are your numbers sustainable?

Good luck!
Wade
 
Other posts have some ok thoughts.
Numbers look OK.
Nothing great but at that price point maybe not a lot of selection?
Of note - Can you consistently rent the property at those rates ?
 
The property is located in Ontario.
The city`s market is very stable but hasn`t really seen huge appreciation in the past. Slow but steady climb.
Rents are realistic and have even been downplayed, I think I can get $1600 per month out of it but I`m keeping it at $1500 to play safe.
The duplex is 3 bedrooms 1 bath upstairs and 1 bedroom 1 bath downstairs.

The neighbourhood where this property is located is going through a transition for the better.

Thank you to all who have commented.
 
QUOTE (DOZAH @ Jul 9 2009, 12:30 PM) The property is located in Ontario.
The city`s market is very stable but hasn`t really seen huge appreciation in the past. Slow but steady climb.
Rents are realistic and have even been downplayed, I think I can get $1600 per month out of it but I`m keeping it at $1500 to play safe.
The duplex is 3 bedrooms 1 bath upstairs and 1 bedroom 1 bath downstairs.

The neighbourhood where this property is located is going through a transition for the better.

Thank you to all who have commented.

is it legal?
 
QUOTE (DOZAH @ Jul 7 2009, 11:19 PM) Please give your opinions.Appraisal price $140,000Asking price $139,000Purchase Price $130,000
20% downpayment $26,000
Closing costs $2600

Mortgage $104,000

Monthly Gross Rent $1500

Expenses (monthly)

Taxes $190
Insurance $85
Maint/Capital expense $225
Management $150
5% Vacancy $75

Total Expenses $725 month

Net Rent $775

Mortgage payment (P+I) $482.84

Monthly cashflow $292.16



This is a legal duplex with seperate metres (tenants pay util.)
It was built in the early 1990`s but is in need of maybe $5000-$6000 of lipstick renos.


I appreciate any and all opinions and comments
Would you buy this?

Good analysis. Expected CAP Rate is $775 * 12 / 130,000 = 7.2%
The problem is that the property generates only $292.16/mo.
Don`t you prefer a property with everything double - double the price, double the rent, double the mortgage and double the net income? (same CAP)
Well, if you can not afford to buy more expensive and it`s your first property then it is still a good start and definitely a good learning experience.
just some things to think about. Good luck.
 
Nice buy and hold- property! If you see a mid term growth thru local Ripple effect or rising curb appeal- go for it! I would take it. Numbers seem to be right and good.

The 292$/month ... and if you can add the 10% management thru self management, great!

Make sure that it really is a legal duplex and that the rent can be held after a potential lose of one tenant.
 
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