$700k 4-family in Philly area
How do such deals look like ? Possible income and expenses?
$5000-7000 monthly gross rent ?
easy to owner manage ?
Have to spend $300k as down payment. What multifamily or mix use can buy ? Will do 1031
@David Smith I think the 5k -7 is doable assume the 50% rule for expenses.
Lots of opportunity in the city feel free to reach out if you need help.
$300k down for a Luxury 4-unit building at $1M —- with $2500 monthly rent per unit
possible?
@David Smith
@David Smith I’ll direct message you.
No - the luxury apt scenario that you are referencing is not possible. It may have been a few years back.
It’s very easy to figure this out on your own. Look at what’s selling in the city. (Center city) in this case what the properties are selling for and what the average rents are.
Since you are borrowing money, in this scenario after all your expenses, you would be lucky to break even. That makes your investment a pure equity play. (At best)
If you are looking to cash flow, it’s possible in less nice areas but it’s more of a headache. After management fee expenses it still may not be worth your while.
Originally posted by @Neal A.:No - the luxury apt scenario that you are referencing is not possible. It may have been a few years back.
It’s very easy to figure this out on your own. Look at what’s selling in the city. (Center city) in this case what the properties are selling for and what the average rents are.
Since you are borrowing money, in this scenario after all your expenses, you would be lucky to break even. That makes your investment a pure equity play. (At best)
If you are looking to cash flow, it’s possible in less nice areas but it’s more of a headache. After management fee expenses it still may not be worth your while.
This is right on, you're not picking up 1% deals off the MLS in those price ranges. 1% is hard enough to find in the $130k-$200k range. The only way I've found to hit 1% deals in this market is to build your own new construction multifamily houses and those are still tough deals to find.
Are there many 4-unit at $1M for sale around Philadelphia?
What is total rent for such in general?
Like to talk to people who closed such deals. Thanks.
Hi David, I have sold some multiunits in the center City market ranging from $800k - $1.3m . These are core asset with lower cap rates between 5 - 7 depend with some force appreciation.
please send me a direct message to discuss further.