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Expert: - 2/24/2004


Question
i am purchasing a 4 family rental property
for $325,000--cash deal
the total expenses-heat ,taxes etc.--
are $15000 a year
the rental income is $48000/yr.
do you think it is a good deal?
should i do a cash deal or take a mortage?
thanks
lou

Answer
Hi Lou,

Thank you for your question.

At this time, in my market a price of 10 times the rent roll or less is a good deal.  Your price is $325k and the net rent roll is $33,000.  That's a good return on your money today.

Should you take a mortgage?  This you should ask your accountant or tax advisor for the best choice based on your overall situation.

Good luck with your purchase.

Hans

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Volunteer

Hans Weber, Licensed Broker Associate

Expertise

I am able to answer questions related to buying or selling residential real estate in New York. There are many questions buyers and sellers have about the process of buying or selling a home that they are afraid to ask or that might seem too simple to ask. For instance: in a house, why do some doors open in and some doors open out?

Experience

Licensed real estate agent in New York State in 1988.
Serving buyers and sellers as a full time occupation since 1988 with over 300 successful residential real estate transactions.

Organizations
National Association of Realtors.
Westchester County Board of Realtors.

Education/Credentials
Graduate of Pace University in 1988 majoring in business and minors in taxation and computer science.

Awards and Honors
Consistently one of top sales awarding winning agents for Coldwell Banker in Westchester County.

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