Need Help by 11/9/2016: MultiFamily with exact numbers...Please
Hey BP Community. Thanks you so much in advance for your help with this situation. Its my first multi family....I've run the numbers, done the research, and this is my last step before making the plunge. See below all the numbers needed (I think) to make the decision to buy.
Property: FOURPLEX-8 bedroom, 4 bath. This units has 4- Two (2) bedroom and One (1) bath per unit.
Neighborhood: Zipcode- 02171. Absolute lowest 2 bedroom on the market in this neighborhood is $1600. Please let me know if I'm wrong.
-Current tenant situation- I will inherit these tenants and raise all rent to $1200/ea. They have never been late on rent. I'm told they will all stick around for at least a few years. The condo needs a little work and could use updated bathrooms and kitchens. The plan is to gradually raise rent to market value, when the tenants move out I will renovate each unit one by one.
Unit 1: Current $1,180 Will go to $1200 when I buy.- 4 year tenant
Unit 2: Current $1,130 Will go to $1200 when I buy.- 15 year tenant
Unit 3: Current $1,120 Will go to $1200 when I buy.- 6 year tenant
Unit 4: Current $1,130 Will go to $1200 when I buy.- 5 year tenant
-Utilities: All tenants pay their own utilities (Gas, oil, heat...not water)
-Water Bill: $650/Quarterly- Paid by owner (me)
-Taxes: $1700/Quarterly
-Home Insurance: $2150/year
-Flood insurance (needed): $1400/year
-New roof 2013
-New hot water heaters
-New electrical
-Mortgage info:
-Purchase price: $780,000 ($260/sq ft)
-20% down: $156,000
-30 year fixed @ 3.708% (**Current level)
-Total mortgage payment (including taxes, ins, etc)= $3,955/Month
-Total income from rent= $4,800
-Cash flow: $805/month (@ $1200 rental per unit).
-Full inspection and final offer scheduled for 11/9/2016
So that's what I got for now. Any insight you guys could give would be incredibly appreciated. Its my first deal and to be honest I'm scared.
Thanks so much!!! Looking forward to hearing your helpful replies.