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Updated over 5 years ago on . Most recent reply
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Quadplex seems to be cashflowing 1k a month. What am i missing???
Turnkey 4 Unit Property I found: Occupied and makes $3900 a month confirmed currently.
Principal and Interest: $1154
Property Tax: $480
Home Insurance: $125
Vacancy- 7.5%: $312
Repairs- 7.5%: $312
CapEx- 7.5%: $312
Prop. Management (I would do myself at first)- 9%: $351
**I went a bit higher with my percentages to be conservative**
That puts my overall expenses at $3046
So if I hired a prop. management company I would be netting: $854 a month for the building: $213.50 a unit.
If I did property management myself, I would be netting: $1205 a month for the building: $301.25 a unit.
Does anything sound wrong? Am I missing anything? Why has no one else taken advantage of it?
Most Popular Reply
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Hi @Kevin Whisler,
The few items I see missing are:
- utilities (even if tenants pay, you have a common meter and water/sewer)
- fire inspection (if your area requires that)
- landscaping and snow removal...assuming it's not always sunny in Philadelphia :)
The property insurance seems low to me, but I don't know your market so omitted that from my list, assuming you already verified that number.
Good luck!