Is This A Good Deal On A 4 Unit Multi-family?

70/20 Mortgage

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 - $450.00

1 Bedroom - $425.00

Lower Level - $375.00 reduced for maint on property

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 my taxes? too much?

Good deal? Bad deal?

Thanks!

Comments(2)

  • robtech14th March, 2006

    Sorry the 4unit cost is $80,000 in very good shape.

    Quote:
    On 2006-03-14 19:53, robtech wrote:
    70/20 Mortgage
    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 - $450.00
    1 Bedroom - $425.00
    Lower Level - $375.00 reduced for maint on property
    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 my taxes? too much?
    Good deal? Bad deal?
    Thanks!

  • andyj14th March, 2006

    Looks Good...
    2520/yr for taxes sounds about right for this area. IL/WI seem to be expensive states.
    Your mortgage percentage sounds a bit high but not out of line. I would like to know more about the terms - here I am assuming both are 30yr fixed - I might be able to assist with mortgage if you would like. I have seen 95% 30yr fixed @6.5% investor loans = one mortgage - that would be less out of pocket for you.
    Remember to calculate your 10% down for your ROI and calculate a 12% occoupancy rate. Some (just a little) of your profit will also be eaten up from maintance too. Careful with the utilities - for my buildings this as just about doubled in the past 18months - get the tennants to pay for utils.
    Calculate twice - spend once.
    PS - where did you find a three unit for 80k? Nice find.

    Andy Johnson




    [ Edited by commercialking on Date 03/16/2006 ]

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