First multi family I'm working on in Raleigh NC.
Sale Price $250k
Quad monthly rentals $700/mo x 4 =$2800
Expenses (including tax) $800/mo. This is my estimate averaged with what current owner has listed. I will self manage.
No large capital expenditures are expected units and quad are in good shape. I am going to have an inspector go through and check out everything. Newer HVAC and appliances. C+/B- neighborhood.
25% down = $917/mo PI
Cash flow = $1,083/mo ... $271/unit
I also believe the market rent rate is $750-$800. So room to eventuall raise rent.
This deal seems good to me in a market where deals are hard to come by. Please give me your thought on going through this process. What do I need to find out.
My first number weren't exact so I uploaded my spreadsheet to make it easier to analyze.
Looks like a killer deal. What zip code is this in?
@Davis Bunn looks like an awesome deal that should be a great money-maker. There aren't many quads in Raleigh. Just make sure you're honest with yourself with the "C+/B-" rating you're giving the property & area.
A Tischer/Peach Creek quad? That'd be my guess. Quite a few (% wise) sales in Peach Creek this year.
Numbers look great and a great return. I notice you figured a 30 year loan. Are you getting a residential or commercial loan? Commercial loan terms are typically less. Totally agree with you about deals being hard to come by.
Numbers look great - Kudos to you for pulling the trigger!
I am familiar with the Tischer/Peach Creek quads. I passed on one a few years ago for around 180k. I wish they were at the same price now.
What zipcode was this in? I've been hunting Quadplexes in Raleigh for a few months now. I've not seen such favorable numbers during my search. Congrats on the find.
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