First Multifamily, what am I forgetting?

[Adam Fansler]

Hi Gang,

I have only done a few single family properties up until now and am looking at some multis. I found a fourplex that I think is a deal but wanted to run it past my "partners" at BP. Property is in Columbus Ohio, in a blue collar neighborhood with not  a lot of appreciation potential.

Heres the nuts and bolts of the deal.

Offer price $135,000

comps $124-150k low side being REOs (not much equity)

Gross Income yr              $28,800

Minus Vacancy (10%)=   $25,920

Repairs, maintenance, property management (5%)                           

Taxes, insurance,advertising

CAPEX ($250/unit/year)

Total Expenses              $10,472

30yr mtg with 20% down at 5% payment would be $580

I'm coming up with cash flow of $176 per month with COC return of 25.4%

Any thoughts?