First Deal: 4 Plex & Duplex
Hey BP folks, I"m a newbie but have been an avid reader but not an avid poster on the forums.
Here's a deal I'm working on right now, my first!!!
Same seller for both properties
4 Plex
Price: $130K
Three 2 bdrm 1bth units, One 1 bdrm 1bth unit
3 occupied, 1 vacant - (2 bdrm unit vacant)
rents are $550, 750, & 750 - potential rent of vacant unit is $850 - 950/mo
Gas and Electric are included in rent price
Utilities are budgeted with clauses in contacts that over a certain usage extra utilities go on the rent
Budgeted Gas & Electric are $130/mo/unit for both utilities
Taxes: $3462/yr
Insurance: $600 - assumed to be going up after appraisal
Water/Sewer/Trash: $137/mo
Steel roof just installed last year, siding have done on property, vacant unit has never been rented since renovation - completely new kitchen with new appliances along with an overhaul of the living room, bedrooms, and bath w/washer & dryer hook ups.
30yr fixed loan @ $566/mo pymt
Duplex
Price: $64900
Two 3 bdrm 1 bth units - small bdrms
Rents: $750/unit - both occupied
Gas & Electric included in rent - same clause in contract as above - $135/mo
Water/Sewer/Trash: $78
Taxes: $970/yr
Insurance: $400
30 yr fixed loan @ $283/mo
I think I can Net Cash flow this place around $200/unit/mo after I've set aside funds for maintenance and replacement reserves at around $300/mo total for both locations. Duplex has more deferred maintenance. Let me know what I'm missing or not figuring. Thanks.
Most Popular Reply
Wow that is ridiculous! I can't believe that they sting the owners with the un-paid utility bill. Could you cover your butt by having an up front utility deposit.. you could use that deposit whether you separate the utilities or not ( if they go over on their utility bill, the extra is siphoned off the deposit)
It sounds like you are getting a good deal in a good area. Thats a great combo.
With the unit that is rehabbed, I would be careful asking top dollar for the unit. My strategy is to ask at market or a little below market so you can rent it out faster but more importantly have more applicants to pick from so you can cherry-pick the more desirable tenants