100k 4plex in Michigan - deal advise
Hi everyone. I would appreciate any feedback anyone can provide on my first rental deal. To me it looks like it satisfies the 2% rule.
The details are as follows:
-Purchase Price: 100,000
-Yearly Income: 29,500
-Yearly Expenses: 9,500 (this came from the realtor so I will need to confirm these numbers)
-4 Units - all 1 bed 1 bath
-All units are rented with one a Section 8
-The house is about 100 years old, but has a 2 year old roof and windows. Its on a main street about 4 blocks from the downtown area of a city of 50,000 people.
-The house needs a full paint job but otherwise is cosmetically appealling.
-There are a lot of other apartments in the are and most are full
-Rentometer shows that the rent is comparable to others in the area
-I am putting 20k down and will take a loan for the remaining 80k
-This is a short sale.
-The seller is paying for a 1 year warranty
Thanks in advance for any help you can provide.