Closed my first deal. Two 4-plexes in Fargo, ND

[Nick Horob]

Recently bought two 4-plexes in Fargo, ND.  $165k/each.  8.5% cap rate.  

All units are 2 bed, 1 bath and are rented out at an avg price of $490 which I figured was $100 too low.  

Well we had a tenant move out soon after closing (which was expected), and I rented out the unit for $595.  If we can get all the units to that level our cap rate will move north of 10%.  This includes 5% vacancy, 7% property management, and 12% for capex.  Cash on cash projected to be 13%.

So far, so good.