Hello all!

I would love feedback on the numbers in this analysis. If you are familiar with the Spokane C class neighborhoods, let me know what you think about this deal. Would you take it?

Also, what is your favorite way to fund this type of property?

The reason I did not jump on this was that it shares the same lot as a 4-plex, so it would make sense to buy all 7-units and perform rehab as a single project. In other words, I would be required to bring a lot more cash to the table, and I was not looking to take on that level of rehab in a part of town I am not as comfortable in.

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

From a perspective of buying multi's on the market in Spokane it seems pretty reasonable to me. Finding Multis with decent COC potential on the market is extremely difficult in Spokane these days unless its some kind of weird hacked up 100 year old single family. We have found listed Multi families to typically be absurdly expensive for the rent potential. Also not sure where this one is, but we hold properties in a number of the "C Class" areas currently (We own in West Central, Hillyard, Chief Garry Park and East Central) and honestly they are almost easier rentals than some of the A/B class properties we own just because those tenants want some stability in their housing and arent looking to move around much!

@Michael I came to the diametric opposite conclusion this year. I exited Hillyard, West Central and Chief Garry because I ended up getting more difficult tenants and it was a headache to manage small mulits in these neighborhoods. I must have been doing it wrong, so curious what your secret is!  

@Nick Beeler this looks like a reasonable deal. But I would want more details to really make a call. What neighborhood, where precisely in that neighborhood? Deferred maintenance? What size units?  Recently sold triplex in Chief Garry, 4-plex in hillyard and 4-plex in west central so those could be good comps. 

@Jonathan McKay , This is in the Chief Garry area. I went through with my agent and estimated a conservative $15,000 per unit to get it rented at around $1,100 (Pending and inspections and due diligence phase). Mechanical, electrical, plumbing and structure look solid at this point.

Each unit is about 900 sq ft with 2 beds 1 bath. I see a triplex that sold in December that looks pretty comparable (better condition).

@Michael DeHaan , Thank you for the feedback. It is nice to hear different perspectives from people with experience with the area and type of property.

@Nick - I think the price that you could get in this area will depend on if it is north of Mission or not, and just how close it is to the river. That being said with $15k / unit you can do a lot. 

I sold 1202 N Pittsburg, and I'm not sure I could rent the 2bd 1ba for more than $1000, even with high end finishes. There's also a triplex on Zappone on the market that could serve as another reasonable comp, maybe closer to what you are looking for. 

@Nick Beeler

I would think the rent would be more in line with the $900-$1,000 range if finished nicely, but you will be fighting the neighborhood for that value. 

I know what buildings you are talking about and I fell into the same boat but my analysis ran into cashflow issues. I was not as optimistic about rents but I could very well be wrong about that. 

@Jacob Radawick , I thought you may be able to comment on what @Jonathan McKay is saying about Zappone since you are familiar with that area now.