Updated almost 6 years ago on . Most recent reply
Analyzing my first fourplex
Hey all, I'm analyzing a fourplex deal and wanted your input. I understand the numbers don't look great, I just want to know if I'm being too conservative in my estimates (especially on the turncosts, capex, maintenance)
Note this analysis assumes a cash purchase.
| Property Info | MyFourPlex |
| Occupancy | Occupied |
| Size | 2000 sqft | 1 bd apt homes |
| Year built | 1960's |
| Neighborhood | Class C |
| Sale Price (USD) | 165,000.00 |
| Closing Costs | 1,200.00 |
| Rehab + Repair | 2,000.00 |
| Total Capital | 168,200.00 |
| Rent | |
| Monthly Rent (4 units) | 1,935.00 |
| Vacancy Rate | 0.09 |
| Annual Gross Rent | 21,130.20 |
| Annualized Expenses | |
| Property Taxes | 2,100.00 |
| Property Management Fees (10%) | 2,322.00 |
| Leasing Fees | 245.00 |
| Property Insurance | 2,200.00 |
| HOA | 0.00 |
| Repair/Maintenence | 1,400.00 |
| Utilities (Lawn, Trash) | 1,600.00 |
| Annual Turncost (Property management fee + 1000/apartment) | 5,935.00 |
| Total Operating Expenses | 15,802.00 |
| Income | |
| Net Operating Income | 5,328.20 |
| CapEx Reserves | 1,600.00 |
| Total Net Cash Flow | 3,728.20 |
| CapRate | 3.23 |
| Cash-on-Cash (post reserves) | 2.22 |