Help with 4plex in So California

[Robert Fuhs]

I'd love the wisdom of the BP brain on this one. Here are the numbers:

4 Plex in So Cal Desert Empire.

Asking $269,900.

3 units are 3/1, 1 unit is 2/2. Recently updated. Pictures on line look pretty good. I ahve not been out there to see it.

All units currently rented. Rent total= $2725. $625-$775 a month.

Expenses per month:

taxes: 196

Insurance: 100

Vacancy: 218 (8%)

Utilities: 350 (trash, water, sewer) Tenant pays all other.

Repair/ Maint: 137 (5%)

Cap Ex: 137 (5%)

Mgmt: 272.50 (10%)

Total expenses: 1410.50

Principle+interest: 1038 (assuming purchase at 269900 and 25% down, 4.6% loan)

NOI=1314.50

Cash Flow= 276.50

COC= 0.4%

Are my numbers right? I would have thought I'd get a decent return on this one, but it's not even 100 per door. And the COC is awful. Am I missing something? Thanks!

[Raymond B.]

@Robert Fuhs,

To make the @ work, do the following:
Hold down the shift key and type @?
Look below this Window, and you will see a list of names of people that have posted in this thread.
Click on the name of the person that you want notified via an email, that you responded to them.
If you are a Colleague with anyone that has NOT posted in the thread, and you want them to see your post, hold down the shift key, type the @ and the first 4 letters of their First or Last Name.
Then look below this Window and click on that person's name.
Raymond