Analysis on a 4-plex in Fresno, CA. Is the math correct?
Hi All,
I am in a contract of purchasing a 4-flex in Fresno, CA. I personally don't think this is a great deal but for a property in CA, I think it is an okay deal.
Fresno investor, is this cap rate and cash flow similar with your current MFs?
I completed the analysis of the property prior signing a contract. I think I got of most of the expenses. Just want to see if I miss anything on the expense.
For property mgmt, it is a flat $50/unit/month. It is not % rent as I put in the spreadsheet.
Thanks in advance,
Phat
Most Popular Reply
Hi Phat,
I'd recommend doing your homework on the home warranty. I've had issues before as it they don't cover ALL issues. So it's not a cure all for saving out of pocket costs, else the rates would be a lot higher.
Most warranties I've seen charge between $50-75 just to get a tech out to look at an issue. The 2 times I've called for problems, the issue wasn't covered and I ended up having to pay for the repairs directly. They are worth it though when something does break and it is covered.
Also, shop around as there are a few companies that offer the warranty, so you can take the recommendation by your agent, but verify and do your own homework. As an agent, there are only a couple that marketed directly to us, so you don't want to pick one based on who does the most direct marketing.
Best,
Allen