Looking to confirm my analysis
Hi all -- looking at a 4-unit property in Glenolden PA. I think its priced too high, so my numbers below work at the price I wish to offer. Let me know your thoughts:
Purchase Price: $250,000
25% Down Payment
Units - Four (4) total: 4 bdrm, 2 bdrm, 1 bdrm, 1 bdrm
TOTAL MONTHLY INCOME $3500
Mortgage Payment: $1021 month
Insurance: $130 per month
Taxes: $408 per month
Heating/Utilities: $218 per month, water and heat. Higher in the winter but averaging this cost out.
Property Management (10%): $350 per month
CAPEX (10%): $350 per month
Vacancy (8%): $280 per month
Maintenance (8%): $280 per month
TOTAL EXPENDITURES: $3,039 per month
Final Numbers:
Cash Flow: $461 per month
COCR: 7.41%
Cap Rate: 16.80
Curious to know your thoughts -- isn't the best deal in the world, but I haven't seen much better out there. Neighborhood is C+/B-.