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!
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!
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 ]