Help me analyze this deal - 4 Unit Apartment
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So I have the opportunity to buy a 4 unit apartment in a REALLY small town (population 650) that is about 15 minutes from my house and where I grew up in the same county I live in now. There is no shortage of people looking for rentals in my area, so I'm not worried about it sitting vacant for long if someone left. Assuming no appreciation on the building due to the rural area I live in, would you do this deal? Here's my breakdown:
3 - 1 bedroom apartments rented @ $400/month with $25/unit in water/trash expense
1 - 2 bedroom apartment rented @ $450/month with renter paying all utilities
Now I can probably get by with raising rents by $50/unit, but that would max out where rent could be on this place due to the town it's located in. I always assume a 10% capex & 10% maintenance expense on each property, let me know if I should be adjusting this.