Is This A Good Deal?
I am a newbie to multifamily and need some advice on a potential deal. Here are the annual numbers:
asking price: 250k
7 units (5-1BR, 2-2 BR)
Annual rents: 33,900
insurance: 1,717
taxes: 2,264
utilities: 4,332
repairs (last year): 1,182
I also factor in 15% for management and vacancy
Current owner pays for water in all units, hot water in 6, and electricity in 3. Is this normal to pay gas/electric bill?? I think rents are pretty low considering he does this currently (range from $350-425). Is in a fairly nice (however older) area near hospitals and universities.
Considering I am looking to only put down 5-10% what would be a good initial offer and what should be my final offer?
[ Edited by natureboy1 on Date 07/27/2006 ]
asking price: 250k
7 units (5-1BR, 2-2 BR)
Annual rents: 33,900
insurance: 1,717
taxes: 2,264
utilities: 4,332
repairs (last year): 1,182
I also factor in 15% for management and vacancy
Current owner pays for water in all units, hot water in 6, and electricity in 3. Is this normal to pay gas/electric bill?? I think rents are pretty low considering he does this currently (range from $350-425). Is in a fairly nice (however older) area near hospitals and universities.
Considering I am looking to only put down 5-10% what would be a good initial offer and what should be my final offer?
[ Edited by natureboy1 on Date 07/27/2006 ]
Comments(0)