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.
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.
@Chris Puglisi Thanks for the reply Chris. My thought was $260k so the 1% of asking works for what I was thinking. Have a good evening.