[Tim's Calc Review] Help me analyze this 4-plex deal

[Tim Hendricks]

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4-plex in, what appears to be, nice shape.  Fairly new to the market. Exterior could use a professional paint job, but rental history looks solid and so does the cash on cash return. What am I missing?  

*This link comes directly from our calculators, based on information input by the member who posted.

[Jaysen Medhurst]

@Tim Hendricks, a few thoughts about your numbers:

• You should include management, even if you plan to self-manage in the beginning.
• There's no way the taxes are only $15/month. The listing says ~$1500/year. Call up the town and confirm the number.
• What about water/sewer? It's unlikely that they are separately metered in an old house like this.
• Shared electric that you will need to cover? Like outside or hallway lights?
• What about the gas? The listing says "separate electric," but there's a gas hook up and forced air heat is noted. Are you  paying for the heat/HW? If so, that's going to be a huge chunk of cash during the winter.
• What are planning to do with the $10k of initial repairs? You mentioned paint. The driveway/parking is a terrible, must be a mess in the winter.

Lastly, you ran your numbers with the "could be" rents from the listing. You have to confirm that those rents are reasonable, don't trust the selling agent! Also, run your numbers with current rents, so you know what you're getting yourself into at the beginning. It could take 1 year+ to get all the rents up to market.