4 Plex Deal Analysis - Kentucky

[James Wilcox]

I have a 4 plex deal analysis for the BP community to take a look at in Kentucky. It is located in a C neighborhood. I have been waiting to get a four plex for awhile and finally have one lined up that I want to highly consider putting an offer in on. This 4 plex was a foreclosure bought by the owner in 2012 for 73k. He has put a lot of work into it and has covered some of the major cap expenses (roof, hot water heaters, furnaces, 1 AC, flooring, ect...). However, it has some major issues in the past. It is completely occupied atm. The only major issue I see is that he has had many major expenses last year due to a plumbing issue from the cast iron pipes that caused one unit to be down for a very long time and did cost a lot of money to fix. Likewise, the plumbing and issue of vacancy of around 38% for last year really hurts the numbers, but I hope the major issues are done with. I am not sure about how to best judge plumbing. My agent and I did different analysis for different amounts and what the "probable" expenses should be.

Think I should try to get it or is this just got more problems waiting for me? Maybe someone with more experience in 4-plexs can chime in. I can provide more information if needed. Never asked the BP community for help so not sure what information you might want.

The BP analysis (130K with my expenses put in) is my take and the excel is my agents take (he does a reverse off cap rate and the reported expenses by the owner).