Texas 4 plex MFH 2 bed/1 bath each
Hello BP. I found this deal that seems promising and I wanted to run it by someone to see if I am missing anything. Note: The numbers listed are provided by the seller and haven't been verified yet. Some numbers are estimated by me which are marked in parentheses. The neighborhood is not the best. The schools average a 3 out of 10 (range 2-4) from preschool to high school. Walk score is 67, transit score 48 and bike score 56. On a neighborhood ranking website it scored a 59, while Texas scored 69.
Details:
4 plex MFH in Texas
Each 2 bed 1 bath
Price: $250,000
Mthly details:
Income: $3,350
Expenses:
Tax: $65
Insurance: $227
Garden: $80 (this is my estimate)
Repairs: $200 (this is my estimate)
Vacancy: 0%
CapEx: $200 (this is my estimate)
Prop Mgr: $335 (this is my estimate, 10% of income. Is this accurate?)
Loan: $1037 (Principle and interest)
Total Exp: $2144
Dwn Pymt: $50,000
Close Cost: $4,300 (not sure about this one, I was told it's roughly $1300/$100K, any input would be greatly appreciated)
Rehab: $0 (Although, it may need some, but nothing is critically in need of rehabbing).
Cash Flow: $1206
Cash Flow/yr: $14,472
Cash on cash ROI: 26.6%
Cap Rate: 10.7% (seller list the NOI as $26,789 and GOI as $40,200, so expenses are roughly 33%)
IRR: 22.3% (see attachment)
This would be my first deal ever and first out of state deal, which makes things more complex and daunting.
Thanks for taking the time to look it over and providing any feedback.