Multi familiy Deal ?

2 Replies

Hello all my BPers. Looking at a 4plex offer but I think the seller is asking to much. I want to get some of the more seasoned multifamily investors and investors in general thoughts.

$315k asking price. Rent rolls are [email protected]$650 & [email protected]$695=$2,645 per month. Tenants pay utilities. Property tax $1,500. I do not have operating expenses. Should this still be analyzed like a SFR except for trash/lawn care expenses.

This deal is in TN if that makes any difference.

Thanks Adam

Hi Adam, 

My first qualifier is if the monthly rent is 1% of the asking price.  Generally, my analysis won't qualify a home unless the rent is 1% or greater.  I have had a few that met my Cash on Cash and Cap Rate requirements but its rare.