Help analyzing a deal!!

8 Replies

Hello everyone i need help analyzing this deal. The property is in Bronx NY. Its a Four-plex,

 The ground floor is a 1 bedroom apartment and 2nd-4th floors are 2 bedroom apartments, both with a balcony. There are 2 gated parking spaces behind the building. All leases have expired and tenants are currently paying month to month. 

Apt 1: $1,200 (1 bed 1 bath) lease expired potential market rent $1,700 Apt 2: $1,300 (2 bed 1 bath) lease expired potential market rent $1,900 Apt 3: $1,350 (2 bed 1 bath) lease expired potential market rent $1,900 Apt 4: $1,300 (2 bed 1 bath) lease expired potential market rent $1,900. 

*INCOME YR

rent;$61,800

*EXPENSES YR

taxes: $11,200

insurance:$1,600

other expenses:$7,500 (estimate)

Listing price is $698k, looking to get a FHA loan. The property can use some light rehab, self manage. Close to public transportation shopping centers and entertainment. 

Any other numbers or specifications please ask and i'll do my best to find the answer. 

@George Hermann Hey George thanks for your questions, I will try to answer as best as I can. The property is located in Highbridge next to yankee stadium and its nearly 3 blocks from the D,B and 4 train 161 street train stop. I know the potential market rents because I live in the area and I am currently looking for a place to move to, so I’m very familiar with the rents in this area. From what I know the tenants are on a month to month due to the owner wanting to sell the property. I have not review the open violations yet. I have not gotten all the info from the seller I’m hoping to get that soon. The property is 3,930 sqft sitting on a 1,570 sqft lot.

Frailyn, location within the Bronx matters. Also, proximity to trains to Manhattan. How did you figure potential market rent? Why are tenants on month to month? Have you reviewed current open violations? What is the FAR for this property? 

@Frailyn Hidalgo To me this sounds like a good deal as long as it’s not on a terrible block and only needs a light rehab. Your proposed rents may be a little optimistic but parking is a plus, and insurance will probably be double. Where is this property in the Bronx?

Hey @Chris Rosenberg thanks for your respond. The property is located in 161 street near yankee stadium. I’m currently looking for a space to move to in the area, so rents are flowing around that number.

Im hoping to get more accurate information from the seller this week coming up and actually walk the units.