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Updated almost 9 years ago on . Most recent reply

Help evaluating a deal
Hello friends,
I'm looking at a 4-plex in the Houston area. it looks like i found one for $300,000 that produces a healthy amount of rent, even after the HOA.
However, the deal looks too good to be true, cash-flowing about 200$ per unit. Is there anything i might be missing? If I paste the deal here, is it safe to discuss it without people maybe taking the deal for themselves?
Thanks!
-Lukas Koube
Most Popular Reply

Do you have anymore specific numbers? Looks like it could cashflow about $100/m each unit if you put down 20%. Does it have deferred maintenance? How much beyond the 20% down would you need upfront money to fix?
Using some general numbers this is what I see.
Revenue
Rent - $4425
Expenses - $3983
Management 8% - $354
Insurance - $150
Capex 5% - $221
Taxes - $800
Repairs 5% - $221
Principal & Interest - $1216
Vacancy 5% - $221
HOA - $800