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Very much appreciated and yes, totally understand you won't know the area etc. I am looking to do an owner occupy. They're in a great town in a good neighborhood and they've never had a problem renting. Again, I very much appreciate you taking the time. If you need additional info let me know! Thanks!
Asking is $220,000
Rents are $700/unit
NOI- $21,216
Cap- 9.6%
Monthly Income- $2800
Monthly Expenses- $1843.70
Monthly Breakdown:
- Vacancy-$140.00 (better safe than sorry I suppose!)
- Water/Sewer/Trash- $176.00
- Repairs - $196.00
- Insurance - $83.00
- Taxes - $247.00
- Mortgage - 811.70 (This will be higher if I do owner occupy. This is based on a 30 yr 4.25% that a lender quoted me)
- Other Maintenance - $190.00
Monthly Cashflow- $956.30
One other note. When I see a cap rate advertised at 9.6, it usually ends up around a 4 or 5 when I get done with my analysis. I have never purchased on a cap rate over 5 on real actual numbers. It is actually a worthless calculation when you really think about it. But, I find ways to add value in other areas. I have purchased zero cap rate properties that made me a lot of money. You just need to add value.
I have some old posts on this forum pertaining to cap rates and value add. Search for them, there may be some value in it.
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