Potential 4 Plex Deal
Looking at another potential 4 plex deal. Fully occupied, Listed at $129,000, #4 2 bed, 1bath units rents for $525/unit now, zoned commercial so would have to use commercial financing, tenants pay electric, landlord pays water/gas/common area electric.
Figured numbers on $120,000 purchase price (highest I'd really want to offer)
96,000 loan (24k down) 5% 20 yr amortization on 5 year balloon.
payment $633/month, taxes $406/month, est. $100/month insurance
Rental income $2100/month total + coin laundry (not included in $2100)
monthly Expenses $45 electric, $100 water, $100 Gas, $40 garbage
Snow removal $30/time, Lawn $20/time
Not using their proforma numbers - 40% rule $2100-633 x 0.4 = $586 cash flow, $146/door
I would plan on doing snow/landscaping/property management myself. Market rents for surrounding area are $550/unit I'd like to get $200/door but very hard to find in decent areas here. Great location close to desirable local high school, but 4 plex across parking lot a little run down. All other buildings in area in good condition, surrounded by single family houses.
Thanks guys! I appreciate it