Multi Family - Is this a good deal
I'm interested in purchasing this 4 plex in my area. Its a 4 unit building with two separate addresses 5812 and 5814. Each side has two 1+1s.
Here are the numbers.
The owner is has them on the market at $139k each. She will do seller financing at 40% down. (this is what they are asking, but I should be able to work the numbers down)
The units are at rent control and total about $2154 a month.
Expenses are about $800 a month. The cap rate in this area is around 6%
How do I determine the value of the building based on the cap rate?
Is this a good deal?
Click on the link below for the spreadsheet of the deal.
Thanks for your help!