Profile picture for lobaugma

what costs (and how much)should factor into my monthly budget for buying a mult-family unit???

is there a detailed list somewhere?? or a spreadsheet with equestions?

  • February 18 2009 - Madisonville
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Answers (5)

Profile picture for wetdawgs
AgentSteve:  Why are you pulling up threads that are almost a year old?
  • January 15 2010
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Investment courses teach that you should also have "reserves for replacement" of large ticket items like roof, furnace, etc.  So, this should also be figured in as an expense.
  • January 15 2010
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Profile picture for Peter J Rogers
http://www.landlord.com/
This site might help you. Its a complex situation since there are many variables/ One simple rule. If the gross return on investment (annual income divided by purchase price) exceeds 10% then thats a good thing.
  • February 19 2009
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You add up your income and expenses.  The amount you have left over is know as your debt service.  I talked to a lender recently who wanted conservative projects of expense, and wanted the subsequent debt service to be covered by existing rents.  This mean your down payment will have to go up in order to have your total loan amount be low enough for your rents to cove all expenses and the debt service. 

  • February 19 2009
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Profile picture for wait n c
On other forums I saw "the 50% rule". That is, account for all costs except mortgage payments to be about 50% of the monthly rent. If you can produce cashflow with the other 50% after paying the mortgage, you're in good shape. Again, I didn't verify the formula but it was a rule of thumb rather strongly argumented. Take it with a grain of salt.
  • February 18 2009
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