Analysis of 4 Unit Opinions
My goal in real estate is to establish long term cash flow.
Looking at a 4 Unit town home style property. List price is $275,000. I think I can get it for $210,000.
Property consists of 2 units with 2BR and 1.5BA and 2 units with 3BR and 1.5BA.
Rent is $750 + 750 + 850 + 850 = $3,200
Taxes and Insurance are no more than $1,000. Only utility paid by landlord is water/sewer.
This is located in a prime location with high property values for the area. Market value of SFR in the area are $175,000-$300,000 I recently purchased a SFR (purchased for $70k + $6k improvements = market value $115,000) in a very slightly less desirable location and am renting for $1,000 per month so the units are bringing in near what a nice SFR does.
Rental demand in the area is strong. I put the SFR for rent and had 15 calls in 3 days. Showed 4 times and had 2 very good and 2 very bad applicants.
Two questions:
1) Is this too good of a deal to pass up and worth the risk of high monthly expenses?
2) Is this a better idea than purchasing foreclosed/dilapidated SFR and converting them to rentals? That market is extremely competitive.