Help me analyze this 4 plex.
I found this 4 plex near my market while looking for deals to practice on and, if profitable, to move on to the next step.
Property is a single story 4 plex, build in 74, and is located in a C neighborhood most likely. All 1 bed 1 bath, no covered parking gravel/grass parking . Definitely has some repairs needed, but not sure on the full extent. Looks mostly like it just wasn't taken care off, I looked up taxes and is an out of state owner. Im offshore working so I cannot go check it out to the extent that I want to yet.
Here are the numbers,
Asking 139,000 (down from 179,000 recently)
Current rent with 3/4 full is $1849 (650,600,599). With minimal upgrades inside I should be able to get 650 out of fourth is not a little more, depends how i spruce up the place. Only rents I could find were being listed at 800-850 for a couple hundred sq ft more.
So lets say rent: $2450 / mo
Noi: $1225 with 50%, I would manage though so really 40% at $1470
If 5% down piti about $1100 leaving me $370 if I manage.
After that I don't know how to estimate ARV for equity or possible hard money/private if I could find it. If going off listed at 139k I get a cap rate of 12.69 with 40%. Looked at 2012 data I found medium cap rate is for apartments ( all sizes is 7% high 12, low 4). Taking that 7% and my noi yearly of $17,640 gives me a value of of 252,000? Unless I use just the 3 rented giving me 190k. Makes more since. I know I need to try and get a realtor to try and see if there are actual comps, I'm just playing with numbers.
Looks like it may need a new roof, can't tell by pictures, so maybe 8k there? Basic washer and dryer in empty, unless I have renter provide, then just some basic cheaper floors/ paint and possible ac depending on age.
If it doesn't need a roof right away im thinking $2000, to get empty unit rdy, and upgrade others later on since they have tenants.
What do y'all think? Would really like some feedback even if negative. I'm not diving into this or anything just running numbers and if I happen to find a really good deal try to pursue it or figure out how to wholesale it to someone. Would be able to get a better look once I'm back home in the area and saw the empty unit, but would only do that after hearing from people on here first since I haven't made it to my local reia yet to network.
Well finished my worked a 12 hr shift, mostly looking this up, I'm off to bed.
Thanks ahead for any feedback,
Seth.