Deal analysis / discussion: Multi-family units in Washington.
Hey guys!
So I have been looking at a lot of properties and have narrowed down a few in: Tacoma, Olympia, and Shelton, Washington. I have found 2 Duplexes and a 4-plex all with good numbers and relatively low vacancy in their cities (under 10%). I just wanted to get an opinion on these areas in Washington! I am really loving these properties and depending on what I hear from you guys, am planning to make the trip up from So Cal to see them.
Here are the numbers to one of the duplexes:
Duplex- 3/2.5
Price- $215,000
Mortgage- $817 @ 25% down, 4.5% interest
Total Monthly Income: $2,215
Electrical Expenses: $180
Insurance Expenses: $86
Water/Sewer/Garbage Expenses: $180
Annual Taxes: $2,632 ($219 monthly)
Monthly expenses: $665
$2215-$665=$1550 NOI
$1550-$817=$733 cash flow
What do you guys think! Even if I choose to be ultra conservative and go with the 50% rule. I come out with decent cash flow of $283.
Total Monthly Income: $2,215
$2215-50%=1100
$1100-$817=$283