What do you think of this deal?

What do you think of this deal?

Rental Property Investor · Dayton, OH · Member since 2018 · 142 posts · 74 votes

8 bed/4 bath fourplex built in 1920 in Troy OH. We're currently working on getting into our first small multifamily, and the numbers look good on this one. Area is decent. Only thing we'll need to change is rehab costs I'm sure, as we've only seen one unit so far and I'm sure we'll need more than $10k total, but we plan to upgrade the units slowly as tenants move out. The first picture is the income statement sent to us from the listing agent. Thoughts on our analysis? It's only roughly $100 "per door", but our goal overall is total cash flow, so $350-$400 total after all expenses and saving for repairs seems good to us.

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  • Cincinnati, OH · Member since 2016 · 146 posts · 104 votes
    8y

    Two things I notice on insurance. 1. Why did there costs fluctuate so much? 2. Why do you think you can insure it for less than half of what they spent in 2017?

  • Rental Property Investor · Dayton, OH · Member since 2018 · 142 posts · 74 votes
    8y
    I’m basing my quote on one I received for a similar property in this town. I’m honestly not sure why theirs was so crazy...hoping someone might have some insight?
  • Cincinnati, OH · Member since 2016 · 146 posts · 104 votes
    8y

    All I can think of is maybe they had to pay a deductible or something? But can't imagine it was that low.

    What utilities are landlord paid, and which ones are tenant paid?

  • Rental Property Investor · Dayton, OH · Member since 2018 · 142 posts · 74 votes
    8y
    Landlord pays water sewer trash.
  • Rental Property Investor · Dayton, OH · Member since 2018 · 142 posts · 74 votes
    8y
    I wondered that too, but I’m not sure. It’s certainly something we can ask.
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