Should I

[Craig Willard]

Here is something I ran across….

1. (2) 4-plex townhouse in great shape side by side. Each unit has 2 bedrooms and 1.5 baths with garage in the basement. These are nice townhouses
2. Both properties need nothing at this time
3. Property tax 5300/yearly
4. Both properties were built in the 90s
5. Sellers are asking 498,000.
6. Income @ 625/unit fully rented = 5000/month

I am struggling with the numbers on this deal, its not looking good

Tax assessment is 480,000.

Lets just say we use the 480,000 numbers. I am told they will not come down much at all...

80K = 20% down

600/month = vacancy rate (not had a vacancy in years but I would rather plan for it)

435/month = taxes

230/month = repair fund

Utilities paid by tenants

expenses = 1465/month 400k @ 6% = 2398/month

5000 income / 3863 in expenses = 142/month/unit

_________ This doesn't look like a good buy at all …maybe I am missing something?? I do think the property is not renting for as much as it could, across the street is pulling 750/unit.

Thoughts?