help running 4 plex numbers...

[Craig Montesano]

4 plex in a decent area. All units are 1 bedroom 1 bath. Brick building with a newer rubber roof and a carport in the rear that could use some work.

asking - $105000 (price has steadily been decreasing...thinking more in the range of 85K to 95K)
Each unit rents for $395/month

Thinking of a 15 year fixed mortgage at 3.5%
25% down
property taxes - $3500 / year
Insurance - $1000 / year
Management fee - 10% of total rents (monthly)

I ran numbers and am on the fence.

Any input is much appreaciated

Thanks

[Harry M.]

Craig Montesano - what numbers are you coming up with? It looks like a pretty good deal to me.
Price - 105000

Down - 26250 (25%)
Closing, etc - 3000
Total cash invested: 29250

Gross rents - 1580
Expenses - 790
Debt service (30 yrs, 4.5%) - 399
Cash flow - 391
Cash on Cash return - 16.04%
Total ROI (includes mortgage paydown) - 20.38%

By the numbers, that's a really good deal. The only reservation I'd have is that at 395/month, you could be getting some pretty rough tenants.

-Harry