Costs for Owning a Townhouse/Brownstone
We are exploring the idea of buying a multifamily townhouse/brownstone that has 1-2 rental units in addition to the owner’s unit. We will be moving to a bigger apartment in the next 12-24 months (growing family) so we figured we’d explore to see if rough numbers are even something that could make being an owner/landlord…
We are exploring the idea of buying a multifamily townhouse/brownstone that has 1-2 rental units in addition to the owner’s unit.
We will be moving to a bigger apartment in the next 12-24 months (growing family) so we figured we’d explore to see if rough numbers are even something that could make being an owner/landlord feasible/interesting.
That said, we live in a condo now so some costs will be new to us. I am hoping some of the knowledgeable folks on this board can help give insight into the the rough costs related to being an owner-occupier/landlord of a multifamily townhouse.
So far the costs I need more info on are below. I am sure there are ones that are missing so any help is appreciated.
Thanks!
* Utilities (Gas, Water, Electric, Oil) per year in a townhouse
* What should we budget for standard upkeep
* Amount to hold aside for major issues – sidewalk repairs, plumbing issues, etc.
* Budgeting a vacancy of 5%
* Yearly legal costs
* Yearly accounting costs
If you need help with purchase financing please email me at :
vsarrica@equitysource.com
Good Luck.
Thanks for all the info – very helpful.
Now we start the search to see if we can find a property that fits our needs.
4 story 2 family semi-detached:
3600 heat
2400 triplex; 1500 ground floor apt, electric
4500 insurance
4000 r/e tax
600 water
Maintenance includes replacement costs for heater, w/h, w/d’s, roof, porch, sidewalk, over a 25 year cycle: 5000/yr
You don’t need an accountant. Mine, who charges me $500, also does my sole-proprietor taxes. I have never (in 22 years of being a landlord) have had to call a lawyer. Of course that could change instantly if a neighbor drops his tree in your yard or something and refuses to pay
Also, talk to an accountant about your current income level. It will determine whether or not accounting losses (after depreciation) from the aprtment are deductible or not.
For my 2 fam –
Water’s about 500
Insurance about 1200
Heat – 2500k or thereabouts
Electric is split but runs about 175/month for whole building
Taxes and stuff, sure
Maintenance on the building a little more than I’d like BUT . . .
Strongly suggest you talk to an accountant before you buy and run a scenario with a building in your price range. The perfectly legitimate deductions for a two family are, to me, staggering. Not a few bucks in your pocket but sizable enough to swing this from an iffy to an affordable proposition.
Not saying it’s right, but it is the case. Good luck.
bobjohn,
I agree with your double negative – Turbotax cannot get nowhere close to this. It’s the same tax code and the same calculations whether done on your PC or by your lying cheating accountant. But if you’re more comfortable with someone doing it for you, suit yourself.
SteamMan…I too was surprised at that. The furnace has got to be from the 1950s but I did notice that the “controls” were brand new. I don’t get any leakage around windows and they are double pane, I put strip caulking around all the doors for a tight seal and insulated the cockloft. The year before I did the insulation I believe I spent closer to $1,900. And my ducts are not insulated in the basement which might make a big difference but then I’d have a cold basement under the first floor apartment.
DiBS,
$1,624 for gas. That seems like a pretty good number. Well done.
-SteamMan
I disagree with posters who do not pay accountants. I pay ~$200 on the annual return and guy saves me much more then these $200. Turbotax cannot get nowhere close to this.