So after paying everything, you’re clearing about $2,700 a month? Doesn’t sound great, especially since you’ll be dealing with repairs, vacancies, and tenant issues.
Feels like you’re just taking over the work and getting the title of “owner.”
@Jesse
If my family member passes, the debt might be wiped out since he’s in his late 60s… but for now, it at least covers itself.
Vic said:
@Jesse
If my family member passes, the debt might be wiped out since he’s in his late 60s… but for now, it at least covers itself.
That’s not how it works. If the debt is secured by the properties, his estate would either have to sell them or let the bank foreclose.
None of these numbers add up.
$900k over 30 years at $5k/month is $1.8 million.
$450 for ten units in insurance? No way.
$9,500 rent for ten units is way too low.
This deal looks way better for him than for you.
So you’d be paying $8,000 a month all in. Your rental income is $9,500. That leaves $1,500 in profit—before repairs, vacancies, and all the random things that go wrong with rental properties.
Two empty units and you’re losing money that month. I wouldn’t be able to sleep at night with this deal.