My first 4-plex deal analysis
Hi guys! I'm trying to do some analysis on my first potential 4plex here. I'm not sure if I'm calculating and/or taking into account all necessary expenses. I'm looking at a 1b/1b 4plex for 265k in Decatur, Alabama. Rents on average are about 600$ a month, but i'm thinking I can get over 700$ a month. They are in a growing historic downtown, nice area, in good shape, wouldn't need much work. could probably put less than 10k in the entire building and that would just be small cosmetic things here and there. Property taxes are about 211/mo, insurance around 181/mo, utilities est. 150-200/mo and water/sewage 130/mo, and garbage 95/mo. With a P&I estimated at about 988. I come with a total of 1,805. Even if I rent the apartments for the low end of 600, that would be 2,400 with a cash flow of 595$. Am I missing anything here? I'M going to manage the property myself and I might even house hack and live in one of the units if possible. I know that changes the numbers if I were to go that route, but if my calculations are correct I could essentially live for free. Does this look like a good deal to you guys? Thanks in advance for any and all help!!