Is this a good deal?

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Is this a good deal?

Dawn Vu
Member since 2017 · 4 posts · 0 votes

I’m a newbie to investing and would like your expertise on this deal:

4 Plex - brand new construction. Growing area. Near a university.

Each unit is 3 bedrooms/2 baths and going rate for rent is about $1250 each unit

Asking price $579k

Is this a good deal?

Any advice is appreciated.

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  • Brian Adzadi
    Allentown, PA · Member since 2016 · 515 posts · 404 votes
    7y
    @Dawn Vu You are going to have to give us few more details for us to start analyzing. For instance, how much are planning on placing for a down payment, what is the yearly property tax on this 4plex, how much do you guess insurance will cost. Will you be the one paying for water/sewer. I just used some generic numbers to just see what your monthly mortgage would be and compare it to the amount of money you will be getting from each unit. At the end of the day, you will not be cash flowing that significantly with those figures. If you ever do get the property, I may rethink the amount of rent I would be charging each unit.
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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    7y
    Originally posted by @Dawn Vu:

    I’m a newbie to investing and would like your expertise on this deal:

    4 Plex - brand new construction. Growing area. Near a university.

    Each unit is 3 bedrooms/2 baths and going rate for rent is about $1250 each unit

    Asking price $579k

    Is this a good deal?

    Any advice is appreciated.

     No way of knowing based on info given.  Rent means nothing alone.

    What's the cash flow per month?  How would you be buying this...funding?

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