Looking into buy my first 4-plex in a metropolitan area in Central Valley California -Did I get the numbers right?
The Property is located in a class C area, right in front of a nice park and close to downtown, shopping malls, churches and a hospital.
I walked there at night and I felt safe. Also, during the day I saw families and low traffic.
Everything is new, with resistant materials and decent finishing. All appliances: including dishwasher and washer machine in every unit. it's a turn key property.
Am I missing something? I know there are several variables, but in general and roughly, from 1 to 10 what would be your rate for this investment?
Any tips will be greatly appreciated :)
(3) 1bed 1bath and (1) 2bed-1bath
Purchase price is 225,000
| Monthly Income: $2,440.00 | Monthly Expenses: $1,708.87 | Monthly Cashflow: $731.13 | Pro Forma Cap Rate: 8.57% |
| NOI: $19,718.00 | Total Cash Needed: $50,000.00 | Cash on Cash ROI: 17.55% | Purchase Cap Rate: 8.76% |
| Total operating expenses: | Mortgage expenses: | ||
| Vacancy: | $122.00 | CapEx: | $122.00 |
| Electricity: | $20.00 | Water: | $50.00 |
| Sewage: | $50.00 | Garbage: | $20.00 |
| Insurance: | $50.00 | Management: | $122.00 |
| P&I: | $912.03 | Property Taxes: | $190.83 |
| |