Multi-family house as a capital investment in an aging city

Of course, then the taxes come

Do you do all of that yourself or do you need an accountant?

in which probably not much will be invested in the next few years

At least that's what I assume, because apart from a maintenance reserve, not much goes down.

I find that somewhat contradictory. Of course, you can leave apartments unrenovated/unsanitary. But at the latest when a tenant moves out, you'll have to take action. Plenty of new buildings are also rising in the Ruhr area. I believe if you're not willing to invest, you can end up badly on your backside. And your maintenance reserve will likely be used for the building itself, not the apartments themselves. Heating, roof, windows...

Net cold rent minus 1%.

Are you referring the 1% to the rent? Then that would be far too little.

Are you going to do all of that yourself or do you need a tax advisor?

I trust myself to do it with the Wiso tax software. Even if I probably have to take a week off in each of the first 3 years and then need a week of vacation once I've finished the tax return

Are you relating the 1% to the rent? Then that would probably be far too little.

I expressed myself poorly again. I meant 1 percentage point. So if I have 7% net cold rent, I calculate with 6% net rental yield, before taxes, because I plan the 1 percentage point as a maintenance reserve.

As long as no concrete object with a purchase price and corresponding re-/financing can serve as an example, it is all pure theory. 6% is unrealistic, 1% maintenance is also far too little and not all costs that still need to be deducted.

Best regards
Dirk Grafe

Then I would like to take this property as an example, I do not want to buy it but it fell under my radar:

Link removed... 4-family house for €245,000 on eBay Classifieds

Assuming the information about the net cold rent is correct and quite a bit of maintenance has actually been done in recent years. And assuming one could get the house including incidental purchase costs for €265,000. Then one would initially have a net cold rent of 8% of the acquisition costs, of course before taxes.

1% maintenance is also far too little or not everything that still has to be deducted in terms of costs.

Then I set aside another 2% of the acquisition price annually as maintenance reserves (for public areas of the building as well as the apartments themselves). I don’t think I have any other costs because I manage it myself.

Then I end up with a 6% net rental yield, of course before taxes. Or am I wrong? Again?