Competitive Market Deal Analysis

[Ben Horan]

Good afternoon!

I am breaking into a hot and competitive market, and may have the opportunity to purchase two identical four-plexes on one lot. All units are 2bd/1ba, and currently rent for $775/mo. The units are 30 years old and B- class, and there are opportunities for value add through incremental updates, additional storage, covered bike parking, etc. The units are located at a busy intersection in a solid B neighborhood, but one that is seeing significant investment and in-fill, and a rent ceiling for the area is probably around $850.

My goals are to buy-and-hold with positive cashflow for a period of at least five years.

Asking price is $750k, and it is currently under contract with a contingency on the buyer selling a different house. I am in a position to make a cash offer.

Any thoughts on that? More information? 

Thank you very much!