11 Moeller Street, Buffalo

Written by Alan Findlay on June 14, 2010. Posted in Investor Properties.

Address: 11 Moeller Street, Buffalo
Property Type: Double unit house
Sale Price: $28,050
Gross Yield: 44%

This double unit house is in a less attractive area, and has one longstanding section 8 tenant (with his brother in the other unit.) The current tenants are good and the yield is excellent, but the house does go with the risk of purchasing in a ‘rough’ neighbourhood.

Vendor Financing – 5 year loan of 30% @ 10% interest – $8415 loan, with monthly repayments of $210 ($140 amortisation and $70 interest)Total Cost to Buyer – $20,435
Legals – $800
Gross Monthly Rent $1025
Monthly Costs $208
Net Monthly Rent $857 – 113 management = $744

IRR in first year assuming no capital growth – Net Income / Cost = 39%
IRR after 5 years assuming no capital growth – Net Income/Cost = 195%

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