So I was looking at Vegas properties today and noticed this really nice (4) 2 bed 2 bath units for sale at around 250k. It's 100% occupied at the moment so I wouldn't have to worry about getting tenants for a while.
If the price of the fourplex is going for 250k and I put 20% down (50k), with an interest rate of about 4.8% , property taxes at .08% of the purchase value. Insurance and maybe an HOA fee would be about $100, not to mention the cost of the property management fees of 10% (220/mo). I am looking at spending around $1500/mo when it's all said and done.
I read that each unit currently rents out for $550 so at a 75% occupancy I would still be able to cover the cost and at 100% I would be cash flowing roughly around $700 a month.
Is there something I'm missing with my calculations here? I'm from California so I don't know the Vegas market as well as I know my own but it seems the numbers workout pretty nice.
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