the rule of thumb on operating expenses, for a hands-free operation, if the complex is older than 30 years, the expenses ratio is 60 (expenses)-40(operating income), if the complex was built within 20 years, 50-50, if within 10 years, 40-60, again this is varied by taxes and insurances, just a ballpark number.
now, this is before any mortgage payments, so if you planning to leverage 500k, your yearly outlay is 30k ish.
so this 8 unit barely breaks even, without reserves, your profit is the principal paydown.
but in long term, you are still gaining, as you can always increase rents, which translates into a better CAP = forced appreciation.
Not sure how old is the building and what is the current condition.
1. How old is the roof? It could be $10k to $15k cost if it needs replacement.
2. How old are the 8 HVAC systems? If more than 15-20 years, it could easily cost you $50k for replacement.
3. How old are the kitchen cabinets/ countertop and appliances, and the bathroom condition? Kitchen and bathroom are the place that you need to update before increasing rents.
8unit，靠近学校，我猜可能租客以年轻人为主。租金一年75k，运营花销（water，sewer，repair，tax，insurance, management 7%）一年24k。
现在不知道商业贷款利率怎么样，还有closing cost。
这是卖家给的cooked的数据。listing price 700k。
这个肯定不是好deal，但有多少降价空间呢？
各位前辈再给些建议。
Remember the rent should times, 85%, also do you pay property management?
偏低。
如果是你自己接手管理，升级和加租，到是可以做的。
are you sure?
亏本买卖满大街。
(发自我的文学城离线浏览器)
120万以上。你说能够70万买到还不是super good deal？
40年； 另外， septic tank 的老房子最好不要
the rule of thumb on operating expenses, for a hands-free operation, if the complex is older than 30 years, the expenses ratio is 60 (expenses)-40(operating income), if the complex was built within 20 years, 50-50, if within 10 years, 40-60, again this is varied by taxes and insurances, just a ballpark number.
now, this is before any mortgage payments, so if you planning to leverage 500k, your yearly outlay is 30k ish.
so this 8 unit barely breaks even, without reserves, your profit is the principal paydown.
but in long term, you are still gaining, as you can always increase rents, which translates into a better CAP = forced appreciation.
我十年前用九十万买了与你这个相似的百年老龄的物业，当时租金只有六千三，回报不到4%。有租控。先后翻新了几套，如今租金$14K一个月，地税长了250%，目前市价二米五左右。因为主要租年青上班族，水电费每年3千左右，每年维修费不超过3千。开支大头是地税保险。
Repairs Mortgage payment Mortgage insurance (PMI or MIP) Vacancy rate Property taxes Utilities (water, sewer, trash, electric, propane, natural gas, etc.) Catastrophe insurance (flood, fire, earthquake, property hazard) New appliances General upkeep, landscaping, and property management HOA fees/dues Office supplies/software Gas/mileage Payroll
该请人请人，自己还有工作，小孩也不大，忙不过来
Not sure how old is the building and what is the current condition.
1. How old is the roof? It could be $10k to $15k cost if it needs replacement.
2. How old are the 8 HVAC systems? If more than 15-20 years, it could easily cost you $50k for replacement.
3. How old are the kitchen cabinets/ countertop and appliances, and the bathroom condition? Kitchen and bathroom are the place that you need to update before increasing rents.
Hope it helps.