Need Advice For Duplex Startup
My brother and I want to start a partnership and buy a duplex. We are both accountants in our mid to late 20’s and have only par knowledge of the real estate business at this time.
Our intention is to start off with 1 duplex and build some "free equity" to provide some supplemental income upon retirement. Research shows that similar units in the area rent for about $900/month per unit. The mortgage would be around $1,100/month and estimated taxes of $300/month. Were looking at roughly $400/month to cover everything else.
Questions:
1) Does $400 seem realistic to cover "everything else"? Other than repairs and maintenance, what are the major expenses that "everything else" would include? (Assuming no management fees)
2) Is there a general guideline of what percentage of rental income is retained on a monthly basis for repairs/maintenance?
3) How much cash should be held in reserve? Is there a guideline expressed as a multiplier of rent?
4) Generally speaking, what can we expect for initial start-up costs?
Thank you for anyone who can answer 1 or all of these questions.
Ah, thank you very much.
-Jim
notify her commanding officer as well. Many times this will put pressure on them to take care of the issue