Is this 4 - Unit a good deal?
Hey all,
I have been looking at this 4 unit. The property is located on the space coast of Florida and in a growing beachside community. The property consist of 2 efficiencies and 2 one bedroom/one baths. Current rents are $550/month for efficiencies and $600/month & $650/month for one bedrooms (all utilities are paid by tenant). This is an off market property, where the owner is wanting $300,000. My thoughts are the property isn't worth more than $270,000.
All units are mostly undated inside with newer A/C, flooring, kitchens, and overall clean inside. The exterior will need cleaning up, mowed, and painted. A roof in the near possibility ($10,000 total).
Rents could be increased to $600 for efficiencies and $700-$725 for one bedrooms.
Current cap rate at $270,000 is 5.9%. I would be financing 75% of value. Would you pursue with the purchase? Let me know if you need more info!
Thank you!