Updated over 9 years ago on . Most recent reply
South Milwaukee 4Plex Analysis
Hey BP,
I currently own one 4 unit multifamily in Bay View and am looking to purchase another building with my brother. Short term he and his fiance plan to owner occupy with the long term strategy being buy and hold. I have been running analysis on many properties and I think I found one where the numbers are slightly better than the rest and am looking for a sanity check!
The property is located in South Milwaukee, Southeast of the airport. All feedback/input is appreciated.
Purchase Details
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Purchase Price = 150,000
Closing Costs = 4,500
Renovations = ? Haven't had the property inspected yet.
Down Payment ($) = 30,000
Down Payment (%) = 20
Interest Rate (%) = 5
Years = 30
Income (Monthly / Yearly)
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Units = 4
Rent = 2,430 / 29,160
After Vacancy = $2,235.60 / $26,827.20
Expenses (Monthly / Yearly)
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Property Tax = 466 / 5,592
Management Fee (11%) = 220 / 2,640
Insurance Estimate = 200 / 2,400
Repair Estimate (5%) = 121.5 / 1,458
Vacancy Estimate (8%) = 192 / 2,332
Cap Ex (10%) = 243 / 2916
Results
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Cash Required = 30,000
Loan Required = 120,000
Monthly
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Income = 2,430
Expenses = 1,442
Financing = 555.74
Net Income = 432.26
Yearly
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Income = 29,160
Expenses = 17,304
Financing = 6,668.88
Net Income = 5,188
Capitalization = 7.9%
COCR = 17.29%
Most Popular Reply
At a minimum it needs a new roof on the house and garage, garage doors should be replaced, has water in the basement and most people are smoking in the units.