My friend Darren Weeks calls the MLS sheet LIAR LIAR. It's true
they do lie...like rugs. That is why in the offer you ask to see
proof for their numbers. In a recent MLS Sheet I was given the
following numbers, I later found out the others. It changed my
numbers quite a bit.
| |
MLS Sheet |
Actual |
| # 3 bedrooms |
1 |
1 |
| # 2 bedrooms |
2 |
1 |
| # 1 bedroom |
1 |
2 |
| Potential Rent |
3050/mo |
2800/mo |
| Property Tax |
2832 |
2910 |
| Insurance |
937 |
1120 |
| Water |
1312 |
1306 |
| Heat |
2550 |
3481 |
| Maintenance |
0 |
??? at least 1200 |
| |
|
|
| Totals |
difference of |
8186/yr cash flow |
So now you know the truth... don't believe the MLS sheet. Every
item on there is suspect. Ask for proof. It's not because they
are really liars it's just that they can put in the insurance
from 2 years ago or this years, they could take one water bill
and multiply by 12 or add them all up. One is convenient and happens
to give you a lower number and the other requires work and the
number might be (probably is) higher.
So the solution is when you are doing your initial numbers, don't
use much from the MLS sheet. Take the rents but make sure they
make sense against reality. You can't really help it if they do
what they did in this case and call a one bedroom a two bedroom.
Use your own numbers for heat and hydro, insurance, and water.
Use their property taxes but add 5 % to them. If the property
makes money in this case you have a winner.
Real-Estate-Haven
