Advice on Quad Plex Purchase

[Bret Cox]

Hello everyone, this is my first post.  I'm looking for some helpful advice on a possible purchase of a quad plex.  This would be my first investment property.  I've found a ton of useful info on the site and have been running the numbers.  Just wondering what others thoughts are.  

Purchase price 300k

Gross Rental Income  3,000/month

Operating Expenses  1,225/month  

Debt Servicing  1,107/month

Loan Down Payment/Closing Costs  82,500

So it's right at the 1% rule.  For cap rate it's coming in at 7.1%.  And for my cash on cash investment, it's at 9.7%.  And monthly cash flow is 668, or 167 per door.

Built in 1977 and in very good shape in excellent community.  Inspection had no major issues.  I've factored in 5% for lawn and snow removal, 5% for vacancy, and 5% for other maintenance.  That's included in the monthly operating expenses.  No property management fees as it's 5 minutes from my house and I'll be managing it.  Taxes and insurance included in operating expenses along with sewer and trash.  The current owner provided an annual expense report and no other items were included on it.  Am I missing any other expenses?

My thoughts are that it looks pretty decent.  Not an excellent deal by any means, but reasonable.  Am I wrong?  Thanks for any input!

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