Southside Easton PA Four-Plex

3 Replies

Hi All,

I have come across a four-plex in Easton PA which I think could be a very interesting first investment.

I will include my property analysis, so please let me know what you think!!  

I was wondering if anyone could help me with a few questions:

  1. 1. What is good cash flow for properties in this area? My research has shown about $100 per unit
  2. 2. What is a good basis for a per unit cost in this area? My research has shown about 80-90K per unit
  3. 3. What are the best areas of Easton/ is the south side of Easton a decent neighborhood? I know that the best way to find this out is to go there but at this point, I want to know where to look to narrow down me speculations. 
  4. This property is on the south side of Easton for 340k.  It has 4 2 bedroom 1 bath apartments. Newish roof and all split utilities. 
  5. To me, it seems like a great investment considering everything is relatively new.
  6. Please let me know what you think!

      Since I was unable to attach my spreadsheet, here are the analysis numbers in short:

      Monthly Cash Flow: $406.33
      Annual Cash Flow: $4,875.98
      Cap Rate: 13.41%
      Annual ROI: 7.17%

      This based on a 20% down payment, 30 mortgages at 3.99% with 25% of the monthly cash flow taken out for vacancy, repair, and miscellaneous expenses as well as 10% deducted for property management.  Taxes and insurance of $200 (estimate) are also factored in. 

      The rents are $950 a month across all 4 units.