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N FLA | Just my math, 5400 per month mortgage, HOA was 170*4? That's 680, Taxes, on a 900,000 place are probably $1000 per month. Homeowners insurance should run maybe $300 a month for the package?
So I'm at about $7300 per month, plus repairs. Gotta set aside something for new refrigerator, A/C, roof, etc but let's forget about that for simplicity.
You said rent of $6400 per month. With the turnover and damage and maintenance you will have in apartment style housing (long term people don't rent quads and condos) I think you will want a rental company to handle your rent collection, leasing, evictions. They will get 10% per month. So the $6400 becomes $5760. I think you're losing $1500 per month of real cash flow. That's perfect world, no repairs, no vacancies, no evictions.
I think you need $1600 per month from a $ 200k house without an HOA to get closer on the numbers.
I don't really think of 4% population growth as a very remarkable number. Doesn't take much of a slip in the economy to translate to no population growth. And this deal is highly speculative, counting on IRS depreciation and property value appreciation. Maybe you have cash to park and are just looking for a 2-3% return, but I don't like the numbers at first glance.
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Thoughts on owning duplexes
