Analyzing numbers on a 4plex

[Raj Vajir]

Hello All,

I return to get expert opinions again on a purchase I am considering of a 4plex unit (2x2 and 2x1).

Asking: $250k

Offer: $210k

Seller agreed at $220k

Current Rents: $2250/month

Proforma: $2500-$2600/month

Water is paid: monthly $179 cost

Insurance: $1000/yr 

Mortgage: $165k @ 5% 30yr term (25% down) = ~$900

Tax: $4600/yearly (Appraised at $218k)

2250(income) - $83 (ins) - $900 (P&I) - $383(tax) - $179 (water) = $705 net income/month

Very minimal rehab needed ($2000 if at that)

Based on these numbers does this seem like a sound purchase?  Let me know if I've missed something.

Thank you in advance for your input.

Raj