Updated over 3 years ago on . Most recent reply
$1M quadplex with -$4000 NET income? Who on earth would buy this?
Saw a quadplex and thought it was a SWEET deal. Did the numbers using estimates and it worked. Then I found out about the $25k taxes. Then I found out the $14k expenses. That is $3k on top of the $6k($9k total) mortgage. Rents are at $7k. With me in there that is $5k gross income. That is 4k NET negative income. Who would buy this? Been on market for 8 months.
By my math, the deal is for a person with $600k in cash. Put that much down and your mortgage gets slashed and you can break even. $600k CASH in order for a deal? So I believe the quadplex would need to be priced around $800k for it to make sense for a normal person without over a quarter million is cash sitting around.
Those expenses and taxes crushed this deal. Wow. This just made me think. What if I get a house around $800k, then value goes up to over a million but rents don't match that and taxes go up. I'll be screwed. To me it's a good deal since I got it for $800k, but anybody buying it, is buying it at >$1M, so without a ton of money down, they won't be able to afford the expenses. I could be stuck with a hot potato.