Is This A Good Deal On A 4 Unit Multi-family?
70 @ 7.37% and 20 @ 8%
Total Mortgage Payment = $511.95
Insurance = $55.00 mnth
Taxes = $210.00 mnth
Utilities = $350.00 mnth?
Total = $1,126.95 a mnth
2 Bedroom - $625.00
1 Bedroom - $465.00
1 Bedroom - $425.00
Lower Level - $360.00
Total = $ 1,875.00
- 1126.95
Total Profit before taxes - $748.05
Subtract approx 25% for taxes
Total Profit with all apts full = $561.05
Am I taking out enough for taxes? Too much?
Good deal? Bad deal?
Thanks!
If by taxes you mean state and federal income taxes, the amount of your tax will depend on your marginal tax bracket and possibly earned income. Keep in mind that you have not included any depreciation which may give you a loss when computing income taxes. Also, you do not have any vacancy costs or maintenance costs in your analysis. I find that maintenance costs can vary a great deal depending on the type of property, condition and neighborhood.
Yes - previous post was right.
Does it need new roof/electric/plumbing/siding/furnaces/water heaters/appliances? That stuff can kill you.
Also, are there any deadbeat tenants that will need evicted? Figure court costs and legal fees plus extra vacancies for kicking them out. Also, when you turn over apartments there are always things to fix/update. Also you need to estimate advertising costs for finding new tenants ($113/week in newpaper in my location).
Yes - previous post was right.
Does it need new roof/electric/plumbing/siding/furnaces/water heaters/appliances? That stuff can kill you.
Also, are there any deadbeat tenants that will need evicted? Figure court costs and legal fees plus extra vacancies for kicking them out. Also, when you turn over apartments there are always things to fix/update. Also you need to estimate advertising costs for finding new tenants ($113/week in newpaper in my location).