Four plex

[Michael Nichols]

Hello.  I am a new  member.  I would like to purchase a four-plex.  I am looking at  one for $136,000.  Rents are $2300.00 a month.   I am still getting all the numbers.  I am concerned about the cost of insurance.   Don't know what to expect.   What are some of the concerns?  I own two single family homes  and are  doing well.  Looking, to expand my portfolio.  Any thoughts?

[Kathy Henley]

@Michael Nichols Build on your experience. If you are doing well, you can see that your rents are covering the expenses and there is money left. Keep up this model. You have plenty of issues to worry about in a multi-unit, but insurance is not one of them: insurance quotes are a phone call away.  If you search for a commercial broker, the broker will present your needs to many interested underwriters.  You will have an answer in a day or two.  There are other expenses of a 4 family that need digging. First off, does the location have a pool of renters? Know your customers.  Are there 4 electrical panels and 4 gas meters?  If not, you will be paying these bills. What is the age of the roof? The seller may not know.  What are the ages of the systems? My inspector lays it our for me so that the repairs or replacements are not a surprise. Practice gathering the facts.