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Updated over 5 years ago,
Fourplex opportunity, worth it?
Howdy! I have a chance to buy a fourplex in a good area in Bryan Texas. Purchase price would be 205k, recent comps of a couple of the same units on the same cul de sac are at 295k. The comps are renovated with new floors and granite counter tops. Unit I am looking at is in good shape, just outdated some. Has a new roof and hvac's seem to have some life in them. It would need exterior paint in the next year or so IMO. The comp fourplex is renting at 800 a month per unit. The fourplex I am looking at is rented for 700 a unit currently with leases in place. Two of the renters have been there for 5 years. I would be putting 20% down, and my payment would be around 1800 a month total with tax and insurance included in that number. Rent would be 2800 a month. I was not in the market for a rental at this time, but this deal fell in my lap. Property is not on the market, and would be purchased from a trusted friend that does not want to mess with listing it. I have owned rental properties, as well as flipped a few properties. My plan would be to buy and hold this property. I have never worked with multifamily deals, do these numbers sound attractive? Thanks for the help!