Rate my deal!

[DOZAH]

Please give your opinions.Appraisal price $140,000Asking price $139,000Purchase Price $130,000
20% downpayment $26,000
Closing costs $2600

Mortgage $104,000

Monthly Gross Rent $1500

Expenses (monthly)

Taxes $190
Insurance $85
Maint/Capital expense $225
Management $150
5% Vacancy $75

Total Expenses $725 month

Net Rent $775

Mortgage payment (P+I) $482.84

Monthly cashflow $292.16



This is a legal duplex with seperate metres (tenants pay util.)
It was built in the early 1990`s but is in need of maybe $5000-$6000 of lipstick renos.


I appreciate any and all opinions and comments
Would you buy this?

 

[mponte]

Where`s the property located?

 

[ChrisDavies]

The unknown is how accurate your rent is. More property specific details please!

The numbers look ok.

 

[wgraham]

Sounds like a good buy. Make sure that your numbers are realistic for your area. If it is leased out already get a copy of the leases. If not take out a couple of ads and see what kind of response you get at that price.

Lastly, where is your market going and are your numbers sustainable?

Good luck!
Wade

 

[housingrental]

Other posts have some ok thoughts.
Numbers look OK.
Nothing great but at that price point maybe not a lot of selection?
Of note - Can you consistently rent the property at those rates ?

 

[DOZAH]

The property is located in Ontario.
The city`s market is very stable but hasn`t really seen huge appreciation in the past. Slow but steady climb.
Rents are realistic and have even been downplayed, I think I can get $1600 per month out of it but I`m keeping it at $1500 to play safe.
The duplex is 3 bedrooms 1 bath upstairs and 1 bedroom 1 bath downstairs.

The neighbourhood where this property is located is going through a transition for the better.

Thank you to all who have commented.

 

[BrianPersaud]

QUOTE (DOZAH @ Jul 9 2009, 12:30 PM) The property is located in Ontario.
The city`s market is very stable but hasn`t really seen huge appreciation in the past. Slow but steady climb.
Rents are realistic and have even been downplayed, I think I can get $1600 per month out of it but I`m keeping it at $1500 to play safe.
The duplex is 3 bedrooms 1 bath upstairs and 1 bedroom 1 bath downstairs.

The neighbourhood where this property is located is going through a transition for the better.

Thank you to all who have commented.

is it legal?

 

[Nir]

QUOTE (DOZAH @ Jul 7 2009, 11:19 PM) Please give your opinions.Appraisal price $140,000Asking price $139,000Purchase Price $130,000
20% downpayment $26,000
Closing costs $2600

Mortgage $104,000

Monthly Gross Rent $1500

Expenses (monthly)

Taxes $190
Insurance $85
Maint/Capital expense $225
Management $150
5% Vacancy $75

Total Expenses $725 month

Net Rent $775

Mortgage payment (P+I) $482.84

Monthly cashflow $292.16



This is a legal duplex with seperate metres (tenants pay util.)
It was built in the early 1990`s but is in need of maybe $5000-$6000 of lipstick renos.


I appreciate any and all opinions and comments
Would you buy this?

Good analysis. Expected CAP Rate is $775 * 12 / 130,000 = 7.2%
The problem is that the property generates only $292.16/mo.
Don`t you prefer a property with everything double - double the price, double the rent, double the mortgage and double the net income? (same CAP)
Well, if you can not afford to buy more expensive and it`s your first property then it is still a good start and definitely a good learning experience.
just some things to think about. Good luck.

 

[NorthernAlex]

Nice buy and hold- property! If you see a mid term growth thru local Ripple effect or rising curb appeal- go for it! I would take it. Numbers seem to be right and good.

The 292$/month ... and if you can add the 10% management thru self management, great!

Make sure that it really is a legal duplex and that the rent can be held after a potential lose of one tenant.