Im looking at buying a 4 plex. Asking price is 229k. A little outdated by appears to be in good condition. Realtor says they could get 725/unit. Currently they have 3 rented and all are on a month to month basis. I think the tenants are paying sub 600 rents (awaiting the email on some of this info). Its a good location. 3 levels so in my mind you need to be young. Appliances but no washers and dryers. IDK history of roof and hvac yet? Property taxes are about 3700. Its close to my house and I plan to manage myself.
What do I do with tenants that are longterm and not paying market rent rates?
Is this a good deal?
This property should break even. It gives you ride off and in time will go up in value. do it.
I calculate value based on current rents + 1/2 the value of increasing rents. I come to a value of about $212,000 assuming that no repairs are needed.
Is there any laundry services on the property? If not, I think that is a problem.
Bill can you explain why you think lack of laundry is a problem? The units have hook ups.
Morry, are you suggesting I buy and count on appreciation in the future?
Hi Reggie. Can you contact an experienced local agent, who is not tied to the deal, just to confirm that folks are in fact reliably renting similar units in the area for $725?
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!