5-Units leased & renovate in Berlin Twp Monroe County Michigan

[Joe Trometer]

For Sale: 5-Unit rentals after 12 years of nurturing and rehabbing.

Gross income from rents: $4050.00 monthly, $48,600.00 annually.

Its 2-duplexes - (two 1-Bdrm and two 2-Bdrm) on a 3/4 acre lot,

With an adjoining 1/4 acre lot with a 3-Bdrm 1-1/2 bath single family house.

Its a pleasant spacious rural type Country lot about 2-Blocks from the town of Flat Rock, MI, and 1-Block Telegraph.

Rents:

Two - 1-Bdrm rent for $600 each ($1,200 total)

One - 2-Bdrm rents for $725

One - 2-Bdrm rents for $975

3-Bdrm house rents for $1150

Total: $4050 monthly - $48,600 yearly

All utilities are paid by the tenants.

All are rented with 1-year leases.

I cut the lawns, plow the snow, and pay $33 monthly for garbage pick up ($400 yearly).

In the lease, tenants shovel their own entrances and walkways.

All units are rehabbed inside and out with minimum deferred maintenance.

All rents are collected with online payments and invoicing.

Current property taxes are $3,500 and Insurance is $3,200, both are yearly.

I read the good and bad about Cap-rates, so how would you price this property.

(I'm flexible for a fair win/win deal)

$48,600 yearly minus taxes, insurance, and trash pickup: ($3,500, $3,200, $400 totals $7,100)

Less $7,100 equals $41,500 cash flow for this property.

These 5-units are bundled into a commercial mortgage. 

$41,500 yearly is $3,458 monthly cash flow.

((At an 8% cap-rate on $41,500 net cash flow, $518,750.00 if I figured this right.))

I'd be happy to discuss offers at a price that will work for both of us:-)

Best regards,

Joe Trometer