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Updated over 2 years ago,
9 Unit Portfolio, Is This A Good Deal Or Not?
First time looking to pivot into multi from SFR.
Came across an outfit that said they are off-loading their portfolio, to move into bigger deals. Portfolio is in a small town (45k population) in Ohio (I'm in Texas.) Price was listed as 260k, but after talking for a bit he said I was looking at the old price and the new/revised one is actually 190k, they had bought it back in April for 160K. They are offering owner financing with 10K down. Here is the proforma they gave me
Type-Proforma
Sale price$195,000
Estimated rehab $25,000
Total investment$220,000
9 units, $21.6k PER DOOR!! Tenants pay electric. Room for rents to be raised post improvements. Close to a ski resort and sports car track.
Average household income of $50,000+.
Properties can generate a 17.78% NET return post improvements!!
PROFORMA
Gross income (annually)$52,260
Operating expenses (annually)$13,136
Net income (annually)$39,124
Gross return - 23.75%
Gross income (monthly)$4,355
Operating expenses (monthly)$1,095
Net income (monthly)$3,260
Net return 17.78%
QUADPLEX
Unit 1: 1 bed / 1 bath$465/month
Unit 2: 1 bed / 1 bath$465/month
Unit 3: 1 bed / 1 bath$465/month
Unit 4: 1 bed / 1 bath$465/month
DUPLEX
Unit 1: 1 bed / 1 bath$465/month
Unit 2: 1 bed / 1 bath$465/month
TRIPLEX
Unit 1: 2 bed / 1 bath$525/month
Unit 2: 1 bed / 1 bath$465/month
Unit 3: 3 bed / 1 bath$575/month
Total$4,355/month
Expenses
Property Taxes$263/month
Insurance$62/month
Water and Sewer$185/month
Maintenance reserve$320/month
Property Management$160/month
Gas Utility Bill$60/month
Waste Collection$45/month
Total$1,095/month
Is this a good deal? What would you do outside of these numbers, to independently determine if this is a good deal? What else should I look for or take into consideration?