Average Landlording Prices

[Bryce Redd]

Hi there, first time poster, long time listener of the podcasts.  I'll get straight to the heart of my question:  I'm losing money on an investment property which, according to market prices, *should* be very profitable, but why?  Details:

• 4 plex, each unit rented at $700 and has 2 bedrooms 1 bath.  Gross for 2016 was $30,163 (implies vacancy loses $283 per month)
• Bought in 2012 for $300k, monthly payment: $1499 -- $853 interest, $354 principle, $184 taxes, $108 insurance
• $482 average maintenance bill
• $196 in management fees
• $121 monthly water bill
• $120 monthly garbage bill

Which brings a positive net of $99 per month in 2016.  I have a few direct questions, but any feedback is appreciated.

• Is 10% vacancy typical?  The property is in Utah County which supposedly has a super hot market: https://goo.gl/moGPG6
• Do the insurance, maintenance, and utility fees look normal?

I've received offers for over $400k on the property, but I can barely make things work as is.  Any advice?  Where have I messed up?

[Rebecca Belnap]

$700 per month for a 2 bedroom?  What city is it in?  Even Springville and Spanish Fork are going for more than that.  I have a 1 bedroom in Lehi that is going for $875, but that does include all utilities.  Still, your rents are low.  Vacancy in Utah county is basically 0.  The maintenance fees seem high also.  How old is your 4plex?  Yes, you could get at least $400,000 for a 4plex almost anywhere in Utah county.

The problem is either your management company or your units are 80+ years old and falling apart.  Without knowing where they are and what they are, it's hard to tell, but I'd be happy to look at it.