Midland, TX · Member since 2016 · 11 posts · 1 vote
I am looking to get into real estate investing. I am in Texas and currently looking at some opportunities in another town 2 hours away that I visit about 4 times/year. There are 2 fourplexes and 1 six-plex for sale all on the same street, by the same owner. He is a physician and is moving, so apparently he wants to sell everything he has there. All of the units are fully occupied and property management is in place. According to the data they sent me, the NOI on the fourplexes in just over 20K/year and 23K/year on the six-plex. The properties were all built in the sixties, but had the roofs replaced 4 years ago and the A/C units replaced 5-6 years ago. They are considered Class C building and location. Asking price is currently 129,900 for each fourplex, and 169,900 for the six-plex. I will go see them in person soon, but I wanted to get thoughts on this opportunity from the experts here.
1) what are taxes? ; 2) what do you expect to pay in insurance? ; 3) Are you financing and if so what rate do you expect and I'm assuming 25% down? ; 4) What do you expect to pay in utilities? ; 5) What do you expect rents to be?
From the Income expense statement for the last 12 months:
First on each 4Plex: 1) $2450/yr 2) $100/month 3) I have great credit and good net worth (own a business, home, and the building my business is in) and should get the lowest rate available. 4) Water and sewer last year for the year were $2924 (it looks like renters cover the others) 5)Total rents were 2450/month for each 4plex.
6Plex; 1) $2940/yr 2) $100 3) Same as above 4) Landlord covers all utilites: $7482 for the year 5) Total rent was $3375/month