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The problem is the property doesnt make enough to cover debt service as well as expenses. IF their data sheet is correct this is what it looks like....
RENTS:
Unit 1:1800
Unit 2:1800
Unit 3:1300
Unit 4:1084
Unit 5:1450
Unit 6:1400
Unit 7:2450
Unit 8:1870
Unit 9:2220
Unit 10:2450
AVG:1782.40
Gross: 213,888
Expenses:114,616
NOI: 99,272
Debt service: Website says $29,771 per/mo ( I think this is high ) My number is $25,337 per/mo
Cash Flow: (-$257,980.00) Redfin's # (-$204,772.00) My #
Why would anyone even do something like this? Clearly i am missing something.
The problem is the property doesnt make enough to cover debt service as well as expenses. IF their data sheet is correct this is what it looks like....
RENTS:
Unit 1:1800
Unit 2:1800
Unit 3:1300
Unit 4:1084
Unit 5:1450
Unit 6:1400
Unit 7:2450
Unit 8:1870
Unit 9:2220
Unit 10:2450
AVG:1782.40
Gross: 213,888
Expenses:114,616
NOI: 99,272
Debt service: Website says $29,771 per/mo ( I think this is high ) My number is $25,337 per/mo
Cash Flow: (-$257,980.00) Redfin's # (-$204,772.00) My #
Why would anyone even do something like this? Clearly i am missing something.
They probably are doing it for the tax deductions and capital gains. Even if it's a total loss, the owners might have such a huge income from elsewhere, that they can write it all off against that income.
They probably are doing it for the tax deductions and capital gains. Even if it's a total loss, the owners might have such a huge income from elsewhere, that they can write it all off against that income.
Yeah i thought about that. The depreciation on it is 184k/yr. Thats a pretty big write off.
The problem is the property doesnt make enough to cover debt service as well as expenses. IF their data sheet is correct this is what it looks like....
RENTS:
Unit 1:1800
Unit 2:1800
Unit 3:1300
Unit 4:1084
Unit 5:1450
Unit 6:1400
Unit 7:2450
Unit 8:1870
Unit 9:2220
Unit 10:2450
AVG:1782.40
Gross: 213,888
Expenses:114,616
NOI: 99,272
Debt service: Website says $29,771 per/mo ( I think this is high ) My number is $25,337 per/mo
Cash Flow: (-$257,980.00) Redfin's # (-$204,772.00) My #
Why would anyone even do something like this? Clearly i am missing something.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,569,440 times
Reputation: 16693
Something you should look at is the whole building and if it gets market rents. If there is potential to raise rents that changes the numbers quite a bit
1084 dollars for one of the units to live in Beverly Hills?
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