Financing in Brooklyn>Question Details

Troy, Home Buyer in Brooklyn, NY

For sale= $533000 including closing cost. Its a six family an the monthly income is $5000. Expense$1500. 25% saved is all i hav. Should go for this?

Asked by Troy, Brooklyn, NY Wed Jan 27, 2010

A comercial 6 family property for sale =$533000 include closing cost. The income is $5000 monthly and the expense is $1500 monthly. The 25% is all i have . Should i invest in this property? email me at itspeper2004@yahoo.com. Thank you.

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James Gordon ABR PBD SFR SRS’s answer
Troy 3500.00 monthly net on a 533K purchase? you need to run away from this one. Even of the net is 5000.00 it would be scary thin and you would need to plan on feeding this property money on a regular basis.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Thu Jan 28, 2010
Figure on 1 or 2 months every year per rental not getting paid. Figure on the cost of roofs, furnaces, and so on.

Can ( and would you want to) you live in the building also? How would it compare to rent?

You say expense is $1,500 a month. Does that include your mortgage? Probably not. How much would the mortgage cost each month? What about taxes, insurance, and any other fees you have to factor in?

Figuring your monthly payment include the whole purchase amount. You may not be paying it, but that is really how you determine if you are in positive or negative cash flow.

I would not want to use all my money in a down payment. If you keep some back you would be prepared to buy any repairs that come up.
0 votes Thank Flag Link Wed Jan 27, 2010
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