Potential Quadplex - looking for advice/suggestions

5 Replies

Hi all, looking for advice on a potential quadplex. Monthly expenses will be $1866 & monthly income $2360. Asking price is $219,900. How high would you feel comfortable going on this deal? Any comments/suggestions appreciated. thanks!

$236K, 1% rental rule.

What do the expenses include? It's already a little tight on cash flow for 4 units.

Thanks for the replies,

Monthly expenses include: garbage $15, electricity $83, gas $124, snow removal $15, insurance $141, property taxes $294, mortgage $722.03, 5% vacancy estimate ($118), 5% repair estimate ($118), & %10 CapEx estimate ($236).

If this is your first property, I would suggest budgeting for property management. Initially you may plan to manage yourself but at some point you may find that you have better things to do with your time. $600 on a quad is pretty decent if your reserves are correct. If I were looking at this one, I would add 10% PM fees and adjust offer to keep me at $600 cash flow with 15% down payment.
@Ryan S. crunching a few numbers quickly, my personal max offer on this would be about $185k. That's using 15% down, 4.75 rate amortized over 25 years. That would put me at about $550-600/month cash flow after all expenses

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