Quadplex seems to be cashflowing 1k a month. What am i missing???

[Kevin Whisler]

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?

[Nancy DeSocio]

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!