Updated almost 8 years ago on . Most recent reply
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-.
Most Popular Reply
#2 General Landlording & Rental Properties Contributor
You also need to take into consideration the amount of your cash flow that you are buying with your own cash (DP). Based on your DB this property does not have sufficient cash flow. You can do better.