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14% Annual Gain on Investment Duplex For Sale
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Property Description |
For sale is a duplex built in 2000 as part of a community of rentals. Each of the 35 lots has a duplex, triplex or quadruplex on it. There is an HOA established to make management as hassle-free to the investor as possible. Further, the HOA has negotiated with a professional management company for an exceptional fee rate, making the investment completely hands-free if the owner wishes.
Units are Three-bedroom, Two-and-a-half bath with central gas heat and gas hot water. Each home is about 1360 square feet. Single Garages, private yards and patios provided for each resident. Higher-quality rentals like this one tend to rent to professionals and established households. The tendency of this demographic, when compared to a household renting at $700/month, is for longer tenancy and greater income stability.
Income:
Each Unit:
$1075 month
+ $75 utility billing
$1150 per month or $27,600 per year
*Management suggests $1,200 per month, plus utility billing, is reasonable upon lease renewal.
Expense:
$3,676 Property Tax
__320 Property Insurance
_1,950 Utilities
_1,638 HOA Dues
$7,584
$20,016 Net Income
Acquisition & Debt Costs:
$375,000 Asking Price
__+2,625 Loan Fees
__+4,000 Closing Costs/Prepaid taxes & Insurance
=381,625 Gross Acquisition Cost
-262,500 New First Mortgage
=119,125 Net Acquisition Cost (31.75% of Asking Price)
$262,500 Loan at 6.25% APR
$1,616.26 P&I monthly: $19,395.12/year
(Rates/Terms & Fees will vary: see your Mortgage Professional. *This is NOT an offer to make a Mortgage Loan)
Returns/Benefits:
___$ 621 First Year Cash Flow
__+2,227 Net Tax Shelter at 35% combined tax rate (See your CPA or Tax preparer for details)
__________=$2,848 First Year RETURN (2.39% of net acquisition cost)
+$3,076 First Year Mortgage Pay-down
+11,250 First Year Appreciation at 3% (Historical data suggests at least this figure)
__________=$14,326 First Year BENEFITS (12.03% of net acquisition cost)
$17,174 Total First Year Gain (14.42% of Net Acquisition Cost)
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| Listing Status: |
For Sale |
| Property Type: |
Duplex |
| Price($): |
375,000 |
| Street Address: |
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| City: |
portland |
| Region: |
Oregon |
| ZIP/Postal Code: |
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| Bedrooms: |
3 |
| Bathrooms: |
2.5 |
| Stories: |
2 |
| Square Feet: |
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| Lot Size: |
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| Year Built: |
2000 |
| Owner Finance: |
No |
| Cap Rate: |
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| Net Operating Income: |
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| Price Per Square Foot: |
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