rental property worth buying? - Posted by frank persechino

Posted by Chris M (CT) on October 23, 2000 at 23:14:06:

Frank,
Thanks for the response to frank. Can you email me the formula that you’ve displayed here (to calculate my own figures)? I’d appreciate it very much.

Regards,

Chris M (CT)

rental property worth buying? - Posted by frank persechino

Posted by frank persechino on October 19, 2000 at 08:02:55:

I am interested in purchasing 4 duplexes with a monthly income of $3000 combined. the taxes are $4000/yr for all buildings and $2000/yr for insurance. Assuming that these are the only current costs, that the apartments will not be vacant and the asking price is $208000. Is it a good buy? if any formula can be used to get an idea of value, please include it.

Re: rental property worth buying? - Posted by Frank

Posted by Frank on October 19, 2000 at 18:31:48:

36000 Income

  • 4000 Taxes
  • 2000 Insurance
  • ? Utilities
  • 3600 Maintenance
  • ? Lawn, Snow, Trash, Management
    =26400 Net Operating Income
    =12.69 Cap Rate

16249 Payment after 10% down @ 7.85 for 360 months
=10151 Cash Flow
20800 Down Payment
= 49% Cash on Cash return

Fill in the ? marks and then decide if it’s a good deal. But if you don’t want it let me know where to sign!

Re: rental property worth buying? - Posted by Ed

Posted by Ed on November 19, 2000 at 01:52:36:

hi! Frank

Could you also email me the formula that you’ve used. I am about 1/3 of the way thru CS course and would like to learn from experienced investors, too.

good night!

ed