the expences are taxes $1657. insurance $509. utilities $3624.
The vacancy rate is next to nothing. It is in a good neighborhood and is well taken care of. It has long term tennants so the non payment is low also.
cjmazur-
The area is McKinney, N. Dallas / Collin County. There is a move to revitalize the historic district of downtown but the city wants to make sure there are still residential housing. For example, on one major street (suitable for commercial dev.), they chose keep it zoned SFR or MF. Lease up ramp should only affect first year cash-flows.
What is the location?
it is in Erie, pa.
Looks pretty good on first blush-- do you have any expense numbers? Historic vacancy rate? Historic uncollected rents?
the expences are taxes $1657. insurance $509. utilities $3624.
The vacancy rate is next to nothing. It is in a good neighborhood and is well taken care of. It has long term tennants so the non payment is low also.
Flips
here is a break down of the numbers what do you think.
Your Investment Preferences
Loan Assumptions
Downpayment: 10.00% ______Interest Rate: 7.000% Loan Term: 30 years ______ Loan Points: 1.00% ______ Closing Costs: 3.00% ______ Expense Assumptions
Property Tax Rate: 2.000% ______ Hazard Insurance: 0.75% ______ %
Management Fee: 0.00% PMI: 0.50% Home Owner Dues:
Annual Maintenance:
Income Assumptions
Rent p/ft:
Rent Margin: On Off
Occupancy Rate: 85.00% ______Annual Rent Inflation: 1.00% ______Annual Property Appreciation: 3.00% ______ Display X Annums:
Enter Property Data
Price: 74,900
Square Feet: 2200
Zip (Optional):
$ Per/Sq Ft: $34.05
Purchase Data
Price: $74,900
Closing Costs: $2,247
Loan Origination (Points): $749
Downpayment: $7,490 (10.00% downpayment)
Total Cash To Close: $10,486
Loan Amount: $67,410
Monthly Pro Forma (Year One)
Mortgage: $448
Property Insurance: $47
Property Mgmt: $0
PMI: $28
HOA: $0
Maintenance: $333
Property Tax: $125
Total Monthly Expense: $981
Monthly Rental Revenue: $1,320
Pro Rated Vacancy Charge: $198
Monthly Cashflow: $141
10 Year Pro Forma**
Year Expense Income Cashflow Interest Tax Deductions Appreciation Equity Total Benefit
1 $11,773 $13,464 $1,691 $4,697 $12,181 $2,247 $684 $4,622
2 $11,813 $13,598 $1,785 $4,647 $9,081 $2,383 $734 $4,902
3 $11,516 $13,733 $2,217 $4,594 $8,636 $2,528 $787 $5,532
4 $11,557 $13,870 $2,313 $4,537 $8,524 $2,682 $844 $5,839
5 $11,598 $14,008 $2,410 $4,476 $8,407 $2,846 $905 $6,161
6 $11,640 $14,148 $2,508 $4,411 $8,286 $3,019 $970 $6,497
7 $11,682 $14,289 $2,607 $4,340 $8,158 $3,203 $1,040 $6,850
8 $11,724 $14,431 $2,707 $4,265 $8,025 $3,398 $1,116 $7,221
9 $11,767 $14,575 $2,808 $4,184 $7,886 $3,605 $1,196 $7,609
10 $11,810 $14,720 $2,910 $4,098 $7,742 $3,825 $1,283 $8,018
--------------------------------------------------------------------------------
Totals $116,880 $140,836 $23,956 $44,249 $29,736 $9,559 $63,251
Total 10 year ROIC*** is 603%
Flips
looks pretty good, make sure the loan does not have prepayment penalty.
I have followed the HUD and IRS sites. Both of which you can regstered for and they will email you.
There seems to be strong competetition but good deals can be had.
The fact that all most all are out of the local area make then expensive to check out.
lease-up or a rent stabilization as you fill the new units.
What area is this?
cjmazur-
The area is McKinney, N. Dallas / Collin County. There is a move to revitalize the historic district of downtown but the city wants to make sure there are still residential housing. For example, on one major street (suitable for commercial dev.), they chose keep it zoned SFR or MF. Lease up ramp should only affect first year cash-flows.
if you can capture a niche of say 5-20 plexes, you might want to see what the general plan calls for in terms of rental hosuing in the area?
Is there Redevelopment agency (RDA money as grants, cheap loans) availble.
The general plan should also tell you the density to which you can build (e.g. 50/arce or 5/arce as examples of HDMF and prob. SFR)
If you are looking for a partner let me know...Im just down the road in Allen.
Ed