Updated about 7 years ago on . Most recent reply
Awesome Small Multifamily Find
Hello everyone, I found this great opportunity. It is a 4 unit quadplex in Dennisville, NJ. The exterior has been rehabbed and a new state of the art septic system has been installed. There are 3, 1bd 1ba units that rent out for $1,100 and 1 3bd, 2ba unit that rents out for $1,700. The building is for sale for $279,900 and is in a low crime area placed right next to a church. It is a corner lot with parking but I calculated its Cap Rate at 9% and CoC to be 25%! If all units are rented out the cash flow will equate to $1308/month! The building was built in 1860 and may eventually need a new roof but besides that all looks well. What do you guys think?
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put together a detailed proforma and plug in worst case scenario numbers. If it still looks acceptable, then go for it