Sound Good Or What
Alright guys,
I think I might be on to my first property and wanted to get some of you alls input on the property.
Its a Multi-Unit apartment building with a pair of 2 bed 1 bath units. The combined rent currently is $1385 for both units at a purchase price of $160k. I have scheduled a viewing of the property for this saturday and I have also come up with a few questions such as:
Whats the lease status of the current tenants?
What are some of the repairs that need to be done?
Barring something that could just squash the deal.......does this sound appealing?
Please let me know if I left something out.
Thanks
Don't have nearly enough info. Amount down, finacing terms, etc? Looks to me just though quick numbers that you looking at neg cash flow. Unless your praying for serious appreciation I'd put all the specifics through one of the many calculators available on the web and on this site.
I am not that experience in the business yet, but this doesn't look that much appealing to me, unless you want to put good amount down.
I have this formula we use, it came from the book "Investing in Fixer-uppers", which we found very useful.
price=rent*100/1.25
According to this formula, the price has to be about 110,000.
But I don't know what is your situation, may be rents are very low, you can increase them, may be it's in mint condition or may be the price is lower then similars in this area.
Hate to say it but the numbers look downright ugly. For a 160k property you need to get at least 1600/month (1% rule) to even make it viable. You SHOULD be able to get over 2k per month in rents for property vauled at 160k.
[addsig]