Posted by JohnBoy on July 16, 2001 at 12:39:43:
You are looking at $260k worth of property with $2770 in monthly cash flow.
After adding in property taxes, insurance, maintenance & repairs, vacancies, and principle & interest payments you would be lucky to break even. Where’s the deal in this?
What interest rate do you estimate you will be paying on a new mortgage? What rate will the seller carry paper at? What are the taxes on each property? What is the break down on rents coming in for each property?
I would estimate you would need to be offering about $200k for all 3 to make this a deal. $208k tops unless you want to plunk a chunk a cash down on these to make them cash flow decently.