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Good deal! That's how you do it.
Seems to me you did very well on the condo also, though I imagine your expenses are somewhat on the steep side, compared to a house or an apartment building.

It's stories like these that make me sad I don't live in a large city. A $28,000 condo? And it rents over $800? Here, all condos over $700/month cost at least $70K. All of them. So houses are a better deal, but still no steal. About the same price/rent ratio as condos. I only have multi unit buildings, but I am trying to find a house or two to buy this summer, to see if I can cut my costs down.

Here's the typical deal for me, one I'm just doing, and it doesn't really work out using the numbers Jim suggested a few weeks ago. But I'll be positive $100/month or so right out of the box, put some cash into my pocket and since I rent to grad students, there isn't a lot of turnover.

This is a tri-plex, owned by a 65 year old widow who wants the rental income, but not the hassles. There are 2 1-bdms and the middle unit is a 2 bedroom all one bath. Near downtown and walk to campus, so it's a natural for students. It's run down, so I'll remodel for about $17K, and purchase for a total price of around $80K. I'll get $17-22K from the bank to cover the remodel and put some in my pocket, and the owner will carry the $80K at around 9.0% to give her the rent she's been making all along. I'll pocket about $5K at closing.

I'll rent one for $290, one for $310 and the middle for $525. Taxes are about $100/month and the utilities I will pay are around $30/month. Since I have a steady stream of students to rent to, I use 5% vacancy, but that happens only when I get lazy or busy with my day job. So, I pocket $5k at closing, I get about $75-100/month on rents (not much maintenance because of the way I structure the leases and because I remodeled) and about $80/month in tax rebate from depreciation, half of which goes into maintenance fund.

Not great, good enough, but the lot this tri sits on is perfect for later development into two 3 bdrm 4-plexes, 6-8 years down the line.

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