Notifications
Clear all
Topic starter
I am looking at houses and trying to calculate what mortgage I would want to carry and I notice two things...
1. Most of the homes have some kind of apartment or two to rent out.
2. There are a lot of 12-14 multi-family unit buildings for sale in my price range.
I pulled up the census stats for the USVI and found that 50% of the homes are owned outright. That's exceptionally high, which leads to my semi-related question. Are the rents typically high enough to pay mortgages?
For example, I'm looking at a $700,000 house. I put $100k down. 've got $600k left for a best payment of abotu $3,200. Now, the house also has 3 1-bedroom apartments. There's no way they rent for $1k, right? I'm thinking $500? I'm asking because I haven't found any rents yet that I can match to a size of home/mortgage/price.
Additionally, there are a few 12 2-bedroom apartment buildings. I know I could call an agent and have them look up the rents, but I'm curious first... Even if the rent is only $400, that's $400x12 or $4,800/month. This building is only $700k as well. Are rents that low? or just no one want the aggrevation of being a landlord for $1,600 month pay?
I'm just curious, because around here (Philadelphia), you don't make any money really for a while. Granted maintenance may eat $1600/month in this case, but breaking even day 1 seems odd. What's the catch?
Sorry to ask 2 questions in one!
Posted : June 12, 2007 1:50 pm
Hi simkiss,
Your question is a complicated one and depends on a lot of factors. General "rule of thumb" is rental income should be approximately 1% of the purchase price, so your 700,000 building should bring in 7,000 per month. If you are going to be living in the "house" yourself, you need to take into consideration how much your "rent" is worth and back that out.
Most east end properties bring high rents, and Red Hook proper is very high. Like I said, LOTS of factors. Obviously, exact location, condition, size, amenities, view is big, potential appreciation, etc., all the usual.
I am a Realtor and have a couple of investment properties in Red Hook. I live on St. Croix, so I'm not looking for a customer, but there are a few Realtors on this board who I'm sure could help you. If you want to PM me, I would be glad to give you a couple of names.
Posted : June 12, 2007 7:30 pm
Topic starter
(thanks, sent you a PM)
Posted : June 13, 2007 1:22 pm
What may account for the high percentage of outright-owned homes is a smart practice of some locals who save & buy a lot. Then they build gradually as they get the money. A lot of those places are large & were built before the housing costs rose.
Depends on what the apartments are like as to how much rent they'll bring. Good luck!
Posted : June 13, 2007 9:55 pm
