Another Prospect

I found this 4-plex while perusing the area I was talking about in my last post. As with the other properties, I emailed the listing agent to get more info. However, using the numbers from the listing, I arrived at the following numbers:

Gross Rental Income ...... $ 21,060
Vacancy Loss (2mos) ...... $  2,106
Gross Potential Income:    $ 17,550

Management (10%) ......... $  2,106
Maintenance (15%) ........ $  3,159
Taxes .................... $    990
Insurance ................ $  1,485
Other (5%) ............... $  1,053
Gross Operating Expenses:  $  8,793

Net Operating Income ..... $  8,757

I bumped up the maintenance due to my not knowing the full condition of the property. According to the listing, it is fully occupied, so I figure it is at least in livable condition. Taxes and insurance were a guess (I asked the listing agent for that info as well). So, I tried to be on the high-side of realistic calculations.

I figure if I can get the owner to take back some or even all of the financing, I should only have a total debt service of about $7k/yr. This should net me about $2,000/yr in pretax income. This is located in a state that has an income tax, so I'd need to find the ramifications of that as well.

BTW, it's located a half-block from a local college.