I want to offer $150K including $20K fix-up cost. Per investment mortgage rate of 7%, that’s about $1,000/month. $270 HOA and $100 Property tax. The total expense is $1,370/month.
The rent is only $1,100/month so I am $270 short every month, or $3,240 a year.
I do get write-off from depreciation, for about $3,000/year. It seems that I will be close to even.
These are the assumptions:
1. assumed full 12 month rent
2. assumed no commission for finding tenants
3. special assessment: lots of units in the complex are in REO or short sale.
4. assume the rent will maintain the current level.
