4-Plex
Hi all - wanted to get feedback on a particular deal, would really appreciate any input as I would be a first time purchaser. Details below, numbers are approximate:
+ Asking Price: > ~$400,000
+ Rental information (all 3 bdr 2 ba, 100% occupied currently): 2 units at $950/month, 2 units at $1,000/month >> Gross Rental Income = $3,900/month
+ Financing info: conventional, 25% down, 30 years >> $1,700/month
+ Property Tax: ~$760/month
+ Insurance: ~$440/month
+ Other operating expenses: seller shared that it's ~$350/month
So it looks like assuming a deal at $425k, I'd be looking at ~6.5% cap rate.
(1) Are the P&L items reasonable?
(2) What are the important questions to ask? (I know I need to ask for the historical schedule E's, schools are highly rated in the area, but unsure about what the most important details would be in making a purchase)
Thanks for your help in advance!
Jimmy