Any flaws with this deal?!
A friend investor is unable to get financing for this property and he mentioned it to me, details as follows:
Purchase Price: 405K (50 days in the market - current owner is retiring)
4 Units - 3 bedrooms each
All units rented @ 1023.00 (including heat) - $ 49,104
Assessment: $ 63,400.Land + $ 256,400. Building = $ 319,800
Expenses in 2014:
Cleaning $ 911.35
Insurance $ 1,316.00
Taxes $ 6,226.00
Trash Removal $ 125.00
Property Maintenance $ 5,127.50
Contractor Services $ 1,200.00
Exterminators $ 1,255.00
Plumber $ 752.00
TOTAL $ 16,912.85 (Oil is not included and this property is in New England)
NOI - 49,104 - 16,912.85 = $ 32,191.50 (not accounting heating oil)
P.S. Property is close to a university and hypothetically tenants should not be difficult to come by...
Interested to hear your thoughts, opinions, suggestions, etc.