Anything specific within the numbers you'd like help with?
A couple things that stood out to me:
- Current county tax value shows $362k. Is your monthly tax payment based on today's tax assessment or tomorrow's tax assessment? Just asking because some counties will increase the taxes after you buy the property. A higher assessment will increase your monthly tax payment.
- Are you moving into one of the units? I ask because I'm unaware of banks that allow 10% down for a rental property, so if you're shooting for primary residence loan, you'll have to remove one of the tenants and the associated rental income from that unit.
- Built in 1838 scares me personally, maybe you want higher maintenance numbers? Did the 2017 renovation include structural stuff or was it mostly cosmetic within the units? Just curious.
- Why is the ARV set at $625k? I don't see anything budgeted for future repairs/renos.
- Just curious if your monthly expenses include property management, yard maintenance, and anything that the tenants don't cover (check the current leases to make sure heating/cooling/water etc is all paid by tenants).
Good luck and let us know if you have any specific questions.
Great questions, thanks for taking the time to post them! I bought the house next door, along with this 4 unit. I probably posted in the wrong place; I own the apartment unit, I am looking for a buyer/partner on it.
We paid 249K, put 200K in renovation, and got it appraised for 625K. Only issue, the comps were over 15 miles away, there is literally no other 4-plexes within 10 miles that have sold in the last 5 years. The area is an affluent town on the outer suburbs of Washington DC.
County taxes (and my numbers) are based on the current assessment from the county. We purchased this in Dec 2017, and the appraised value declined from 2017 to 2018. I'll redo the numbers with a more likely estimate.
I have units leased to two local restaurants that use the units for staff.
We renovated everything, there is nothing needed currently. Tenants pay all utilities, I had them broken down by unit when we renovated (4 electric bills, 4 water/sewer bills).
Ah, I see. Congrats on the huge profit you already made!
Good luck with the sale!