Posted by Marc Dyer on January 21, 2010 at 14:45:39:
What’s in the 24k for expenses? Right now I get 3400 for two (4b) units and the tenants pick up all the utilities.
How do I make this deal - Posted by Marc Dyer
Posted by Marc Dyer on January 15, 2010 at 11:54:00:
I have a 5 unit building Im interetsed in purchasing and renting. Its asking price is 529 I could probably get it for 500. I can bring in 4000-5000 per month for rentals. I have a two family a block away that brings in 3750 a month. I turn kids away every year looking for housing. My problem is the house I have is under water by 50k and I have bad credit. It took me a while to figure out how to make money with the place but its making money now. I need financing for the place.
to skinny - Posted by Patrick
Posted by Patrick on January 16, 2010 at 11:36:44:
Marc,
This deal is to skinny for me, and many investors I know. Here’s why
Annual income = 60K
minus expenses = 24K
Total annual income = 36K
Purchase price = 500K
down payment of 20% = 100K
Monthly payment on 400K @ 6% = $3K (rounded up)
So, my 100K is gaining 0% interest.
Get the purchase price down accordingly with the expectation of lower monthly income, then you have a deal in my opinion. (it’s only one opinion)
Patrick
Partner with investor - Posted by John Merchant
Posted by John Merchant on January 15, 2010 at 13:53:00:
Since your FICO is a little weak right now a money partner is likely the only way for you to acquire such a property.
And seeing if you could sell this deal to an investor would be a valuable experience for you as it’d show you any/all weaknesses as seen from a 3d party’s viewpoint and could just get you a good future RE investor.
I’d guess that a goodly percentage of all participants on this site are finders, not funders themselves, so maybe one or more of those smart guys/gals will chime in w some invaluable advice here.
Re: to skinny - Posted by james (CA)
Posted by james (CA) on January 29, 2010 at 01:06:10:
I believe 24K is 40% of income in general. You need to pay for tax, insurance, maintenance, vacancy (another 5%), painting when t/n move out, marketing etc.