4-plex numbers overview

[Jay S.]

How does this 4-plex deal sound to you guys?

2 apts rent for $500/mo

1 apt rents for $525/mo

1 is currently being renovated & when ready will be renting also for $525/mo

Insured for $200k

Property Tax $653/yr

Hazardous & Flood insurance $2771/yr

4000 sqft

2/1 & 2/2

6.3 miles from major University

asking price $125k 

I will be going to look at it tomorrow.

You guys helpful information & suggestions are greatly appreciated.

[Philip K.]

Originally posted by @Account Closed:

@Jay S. 

Your at a Gross Rent Multiplier of 5.09, which is not a home run but it is very solid. I would definitely take a look at this deal. My quick analysis looks like this:

Gross Potential Income = $24,600

Net Operating Income = $12,300 (50% guideline)

Debt Service = $7920 (Assumes 80% LTV, 5%, 20 year amortization)

Cash Flow = $4,380

Cash on Cash Return = 18% ($4,380 / $25,000 down)

This is just a quick analysis. You will need to go far more in depth if you decide to move forward. But on the surface I would say this looks like a deal.

@jay sassau

Just curious why you did a 20 year amortization instead of 30? This should be able to qualify for residential if it's 4 units and a 30 year amortization would improve cash flow.