Help with 9plex deal analysis

[Thomas Shaw]

Hello,

I recently found a property that is a 9 plex. It's 5 1 br/1ba units, and 4 2br/1ba units.
From my best research the 1 brs will bring in around 550-600 and the 2 brs will bring in around 750-800 for a total of around 5750-6200.


The information I have says it is fully rented out and the landlord pays trash and water. I'm not totally sure how much these would typically run. This is in a smaller city(maybe 50k people) in Texas maybe 45 minutes out of Houston.


The tentative numbers I've estimated seem to indicate it's a good deal, but I'd love to have a few more eyes on it.

What information could I provide you guys to help?

[William Nelson]

1. What’s the purchase price?
2. Bank loan for the purchase or a contract sale? (i.e. what’s your initial investment going to be on the property?)

As for the water and trash cost, you should be able to call the city and get these numbers (especially if it’s such a small town).

I’d also recommend talking to the current tenants to see if they’ve had any persistent issues (e.g. drainage issues which might point to roots in the drainage system lines and can be an expensive fix). Talking to the tenants can also be beneficial in understanding if this is a desirable place in the town.