Updated almost 12 years ago on . Most recent reply
My mom is making her first Biggish Multi family...
So my Mom and Step dad are considering purchasing two 4 plex buildings in our home town. I'm just concerned that they are paying to much for the revenue they are getting.
They are listed at 210k each and hope to get them for 180k each and the gross revenue is currently 3,800 combined. Threre are 6 2bed 1 baths apts and 2 1bed 1bath apts. Here is the listing.. http://gihomefinder.com/listing.php?MLS=20130887 There are four new ac units and a new roof in 2005. They want to make the apts a little nicer and hope to get another 50/month for the 2 beds and maybe 30/month more for 1 beds. So that is a total cost of probably $15-20 because my step dad is a contractor and can do the work cheaply.
So the total revenue will be 4,160 per month for a total cost of $380,000.
My step dad will also be doing most the repairs and maintenance. There hope is that since he will be doing most the repairs etc that the cash flow will be much higher.
What do everyone think??