Off The Sidelines: Case Study in Progress, Please Help
So after a year of reading everything I could on BP. We finally found a MFH meeting our criteria and are in contract. The proprty is in Colorado Springs, near downtown and Memorial Hospital and has a Single Family Victorian, and a Fourplex (Zoned Duplex Though), with a two-car and a one-car detached garage.
I hope to post here as we go through due diligence to track our experience for the next newbie that takes the leap. I also hope to learn from teh advice of experienced vets of MFH along the way.
Current rents seem low so I think I can do much better. Was owned by an estate and rep of estate was in CA and never even saw the property. Tax Records show being taxed at a 359K value and my Fire Policy quote indicated a 525K rebuild cost. Victorian was built in 1892 and Fourplex in 1955. all buildings and garages have new roofs put in Jan 2013.
We are contracted at 235K. Current rents: Unit 1 (3/1/1600 Sq FT): 750, Unit 2 (2/1/840 Sqft) 575, Unit 3 (1/1/720) 375 and the SFH Victorian is a 2/1/1200sqft at 625 (tenants in place 8 years.)
I am starting the due diligence phase and hoping to get some advice. Currently scheduling inspector for Thursday 21 April 2013, also scheduling a mould and meth residue assessment, hopefully for Thursday as well.
I got my Fire Policy Quote today, much higher than I expected: $1960 a year.
What else should I be digging into?