Analysis on a 4-plex in Fresno, CA. Is the math correct?

[Phat Vi]

Hi All,

I am in a contract of purchasing a 4-flex in Fresno, CA. I personally don't think this is a great deal but for a property in CA, I think it is an okay deal.

Fresno investor, is this cap rate and cash flow similar with your current MFs? 

I completed the analysis of the property prior signing a contract. I think I got of most of the expenses. Just want to see if I miss anything on the expense.

For property mgmt, it is a flat $50/unit/month. It is not % rent as I put in the spreadsheet.

Thanks in advance,

Phat

[Allen Maris]

Hi Phat,

I'd recommend doing your homework on the home warranty. I've had issues before as it they don't cover ALL issues. So it's not a cure all for saving out of pocket costs, else the rates would be a lot higher. 

Most warranties I've seen charge between $50-75 just to get a tech out to look at an issue. The 2 times I've called for problems, the issue wasn't covered and I ended up having to pay for the repairs directly. They are worth it though when something does break and it is covered.

Also, shop around as there are a few companies that offer the warranty, so you can take the recommendation by your agent, but verify and do your own homework. As an agent, there are only a couple that marketed directly to us, so you don't want to pick one based on who does the most direct marketing.

Best,
Allen