Updated about 8 years ago on . Most recent reply
4 plex ---DEAL OR NO DEAL??
Would you do this deal.
This is a 4plex.
Details
4 units. Each unit is 2 bedrooms and 1 bath and around 650 sq ft each. There are 2 buildings each with 2 units. Total building sq footage is 2576 sq ft on a 6600 sq ft lot.
All the units have been remodeled in 2017 with new roofs, electric, plumbing, paint, sheetrock, flooring, kitchen and bathroom updates. All 4 units are practically brand new.
Numbers
Asking Price - $190,000 OBO
Current rents - $925/mo per unit (under market and can be rented section 8 for $1050/mo)
Total Rents per month - $3700
Average electric bill for the past 6 months - $450/mo
Average water bill for the past 6 months - $100/mo
Insurance - $1500/year
Taxes - $1500/year
Current Total rents/year $44,400
Current Total expenses (insurance, taxes, utilities) - $9,600
Current Net operating income $34,800
Total rents/year fully occupied - $44,400
CAP Rate full occupancy - 18.3%
I negotiated down to $175k
Thank you in advance
