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Peter Brunton…,  in San Francisco, CA

Investing in Dallas/Ft. Worth-Follow Up question

Asked by Peter Brunton, MBA, San Francisco, CA Sat Feb 16, 2008

I wanted to thank everyone for their responses on investing in a duplex in the area. I also wanted to get people's thoughts on my list of assumptions. They are as follows:
1. Yearly property taxes approx. 2.8% of purchase price
2. Insurance approx $1000 per year
3. 2-3% yearly rental increases
4. 1-2% yearly property appreciation
5. 10% of gross rents for management fees
6. Loan interest rate of 7%
7. $1500-2000 maintenance fees; with major repairs every 5 years
8. Preferably 15% down payment, 20% if necessary

Do these sound right or am I missing anything?

Help the community by answering this question:


Vanancies, if your vancant your 50% loss lof income.
0 votes Thank Flag Link Sat Feb 16, 2008
That's probably a good start. How about vacancy rate? I normally conisder 10% around here. It is pretty tough to rent things occupied like they do in SFO area. Taxes vary by neighborhood, but the 2.8% is a good general figure.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Feb 16, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
I am unconfirmed of where you are obtaining your figures it appears to very under stated. for the potential gross / net profit. Everything stated is over the norm,,,, or under the norm. Keep in mind this is your business plan each investor has their own way to buy and sale real estate to obtain the highest yield on their return when sold
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 16, 2008
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