4 Unit under contract, what do you think of these numbers
I just put a 4 unit under contract that is definitely in need of some cosmetic love. I am under for 235k, am trying to get 35k built into the loan for construction costs which should cover all of the units.
Current rents are 675,700,1100,688.
Plan is to bring rents up to 750, 800, 1200 and 950.
Taxes run about 7100/year and insurance about 2400/ year.
It is going to be a bit of a battle to get 2 of the tenants out which I have heard are not paying their rent.
What do you guys thing of the numbers on this deal, and does it make sense?
Thanks!