4 Plex
Hi, All. I've been looking for a multifamily property, and finally came across one that seems to work. All 4 units are rented for a total income of $2,235($26,820/year), with overall expenses of $7,630. So Net Income is right at $19,000 without accounting for interest. I plan to cut back on expenses as I will begin to mow and clean the hallways myself. I'm wondering what kind of return one looks for on mutli family. This property has a rough cap rate of 8.75, which is decent.
With some minor improvements, and eliminating expenese, I don't see why I can't get the cap rate above 9 or maybe even to 10. Any suggestions or input would be great! Thanks!
Ethan