My First Deal 4 Plex in Phoenix
Well my first deal is done. I am the proud owner of a 4 plex in Phoenix, AZ. Before I go into the details with the numbers, I should tell you about my goals. I want to get into commercial multi-family real estate investing. I knew from the beginning that multi-family is where I wanted to work.
Phoenix, AZ, 4 - 2 bedroom/1 bathroom 800 sq. ft. units. Built in 1984, single level, well maintained and completely remodeled a few years ago.
Purchase Price $179,000
Down payment $45,500
Closing Costs $4965
Gross Annual Income $24,600
Vacancy Loss 10% $2460
Adjusted Gross Income $22,140
Property Mgmt. 8% $1771
Maintenance/Supplies $1064 (calculated using the average of actual numbers from 2011,2012,2013)
Water/Utilities $2458 (calculated using the average of actual numbers from 2011,2012,2013)
Annual Mortgage $9865 (includes insurance and taxes in payment)
Estimated Total Annual Expenses $17,618 (mortgage/taxes/insurance, vacancy loss, maintenance, property management, utilities)
Estimated Annual Income $6982
Cash on Cash Return 13.8%