Updated over 7 years ago on . Most recent reply
Dayton (Kettering) 4-plex deal analysis
Hello BP members!
I have been eyeing some 4-plexes offered by a turnkey company in Dayton.
Here is an example of one:
514 Wiltshire Blvd, Kettering OH 45419
Its 4 1bd/1ba rooms
I want to get everyone's opinion on how good a deal this is. I would be responsible for water, trash and yard maintenance. Turnkey company assessed this cost as 1800 a year. Is that too low? Here are the numbers I crunched.
| Purchase | $155,000.00 |
| Rent | $2,100.00 |
| Mortgage | $665.66 |
| Taxes | $294.08 |
| Insurance | $66.67 |
| Vacancy (7%) | $147.00 |
| Repairs/capex (10%) | $210.00 |
| Prop Mg (12%) | $252.00 |
| Maintenance | 150 |
| Total expenses | $1,785.41 |
| Income w Mortgage | $314.59 |
| Income wo/ Mortgage | $980.25 |
| Cap Rate | 7.59% |
| COC | 11.33% |
| 50% rule | $384.34 |
Note quite 100 a door, but appealing to me given the good school districts and location.
Most Popular Reply
@Aamir Shah, it's not a "deal", if $155k is market value.
Hint: look up what it sold for last time, recently. Is $155k more than market value?
[Oh, I've done that for you: It didn't sell at $134k at the height of the selling season last Summer, but now they want $20k+ more, in Winter?]
That's not to say there's no money to be made. But, if others are getting more than $100/m per door, then why aren't you looking for that too, right? [But if you've been convinced by the location and schools, am I wasting my words?]
I can't speak as to whether $1800/y is too low for water, trash and yard maintenance, but given who's telling the story, what do you think? Good luck...