Puyallup property analysis

[Kevindra Singh]

Hi BP,

I'm a Seattle based newbie. I am planning to buy my 2nd fourplex, but this time in South Hill Puyallup, WA. I am new to Puyallup area, don't have much idea about the upside potential of the location. Does anyone have any idea about it?

3 units are in good shape but have to do some renovation on the 4th unit. Building condition is average I think, roof is ~15 years old (composite roof). So, may also need exterior painting + roof replacement. Also, I wanted to get a second opinion on what you think about the numbers:

• PP : $650,000
• Rent (after repairs): $1275*4 = $5100
• Vacancy (6%) : $306
• Maintenance & Repairs (10%): $510
• CapEx (5%): $255
• Utilities (10%): $510
• Taxes: (10%): $510
• Insurance: $200
• Management: $0 - planning to manage myself for now but may hire PM down the line (1-2 years later)

• Total Expenses: $1975
• NOI: $3125
• Mortgage (PI) (@ 5.5%): $2514
• Cashflow: $539 / month = $6468 /year

• Down (25%) : $162500
• Closing costs: $13,000
• Repairs: $35000 (don't know what repairs are needed yet)
• Total OOP: $210500
• COC return: 3.07%

Do my estimations look fine for the location? Am I missing anything? Thanks!