|My first rental property.Posted by: Paul Apr 14 2003, 06:15 PM|
I am thinking of purchasing a rental property in Santa Monica. The price of the property is 2.2 million 11 units the income from tenants is 13500 per month. On paper does this look good? What am I looking at for a down payment? What should I be aware of? Is this to many units to start with? Any help would be appreciated.
Posted by: loanuniverse Apr 14 2003, 08:22 PM
Does it look good?
Not at first glance… Your rental income is $162,000 a year. Pricing seems a bit rich for a property bringing in that much rental income. Take a look at my
financing rental property page for detailed info.
Let me do a quick rundown of the numbers:
rental income $162,000
less (vacancies 5%) $8,100
Net Rental Income $153,900
Estimated taxes $30,000
Insurance estimated $20,000
Maintenance & Utilities $10,000
Total Operating Exp. $60,000
You end up with $93,900, which is not enough for a $2.2 Million property in my humble opinion.