Updated almost 9 years ago on . Most recent reply
First potential Multi-family
Found what I think to be a descent deal on a 4plex
It's listed for $125k with a gross income of $22,800 fully occupied. There's currently 3 out of 4 units leased. The building looks to be in pretty good shape with some recent renovations and cosmetic work.
Expenses according to the listing:
Annual Taxes: ~$1134
Estimated Insurance: ~$1411
Estimated utilities/lawn/vacancy: ~$1704
Estimated Property Management: ~$1824
According to the analysis from the listing we're looking at a net of $16,727 and a 13% cap. With my own analysis accounting for 40% expenses off the gross income i'm still looking at a ~11% cap.
I normally would manage the property on my own but it's 3 hours away from me.
I've never bought a mulit family property so if i'm missing anything please let me know!