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Old 09-06-2004, 05:22 PM  
aflex
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Join Date: Oct 2002
Location: New Jersey - adaptweb at gmail.com
Posts: 3,127
i'd recommend if you buy a complex, when you are a little more experienced in being a landlord. like someone mentioned, you could lose your shirt.

for example (taken from a book):

You own a 12-unit building. You underprice each unit by $25 a month. The cap rate is 9%. How much does this underpricing error cost you?

Lost income = $25 x 12 units x 12 months
= $3,600 per year

Lost building value = $3,600 / .09 = $40,000

You've lost $40,000 of value just by underpricing $25 per month.
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