$219,000
This is a unique situation. The seller would like to discuss all creative options. The home is going to need substantial renovation.
Property taxes 4%–6%
Insurance 2%–4%
Utilities (if owner-paid) 10%–15%
Repairs & maintenance reserve 5%–10%
Vacancy & credit loss 5%–10%
Landscaping/pest control 1%–3%
Capital reserves (future HVAC, roof, appliances, etc.) 5%–10%
Total (self-managed) 25%–40%
Gross Potential Income
5 bedrooms + studio = $6,500/month
Annual = $78,000
Adjust for 90% occupancy
Effective Gross Income = about $70,200/year
Example expense budget (30%)
Expenses ˜ $21,000/year
Net Operating Income
Approximately $49,000/year
Using common investor cap rates:
Cap Rate Value
10% $490,000
8% $612,000
A one-third interest before any minority discount would be approximately:
$163,000 at a $490k valuation
5
Beds
⋅
6
Baths
⋅
2791719
MLS
3116 Kings Way, Las Vegas
Courtesy of Joseph Modig with Real Broker LLC.
