Need Your Help With Potential Fourplex. Is this a good deal?
This is my first time positing on the BiggerPockets forum so please let me know whether or not this is appropriate. I found a multifamily house in a small town in Indiana and hope that some of you would help me analyze this deal. This would my first rental property, so any advice and guidance would be greatly appreciated!
I have personally seen the inside of one unit and one of the garages with the real estate agent. The house seems to be in great shape with minimal need for fixing and improvements. I think that maintenance would be relatively low at this property at least for foreseeable future. However, I will certainly hire an inspector. Also, the house is in a safe neighborhood and good school district. I would say B+ or A- rating.
For more information, I am a physician with good credit. My plan is to live one unit and rent out the rest for a couple of years. Below are some details of this house:
-Asking price: $330,000
-Year built: 2006
-Type: Fourplex
-Bedroom: 8
-Bathroom: 8
-Garage: 4
-Total sqft: 5000
-Tenant occupied: All 4 units
-Monthly Gross rent: 3200
-Annual Gross rent: $39,600
-Annual Operating expense: 7300
-Property taxes: 5000
Questions I have:
- 1.What is your first impression on this deal base on these info?
- 2.I saw the ad online and contacted the real estate agent directly. Should I find my own realtor to help me through the process as a first time home-buyer?
- 3.The realtor said there is room for negotiation. What would you offer base on these numbers?
- 4.Since all 4 units have been occupied. What can I do if I want to live in one unit? They are all stable tenants Is it possible to stop renting to one of the tenants at the end of their contract?
- 5.What are other details I need to pay attention to in analyzing this deal?