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Updated over 8 years ago on . Most recent reply
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8-plex - Should I pull the trigger?
Hello. Here are some short specs on a possible property I am considering. Please let me know what you think.
- 8-plex in a lower-income neighborhood, no issues keeping it rented.
- New elec. and plumbing + some other upgrades like a newer water heater.
- Just passed 3-yr borough inspections
- Tenants pay electric (all metered out), Landlord pays utilities.
- Gross Rent/Year is around $55,000 ($4583/mo; $572/unit)
- One unit on the 1st floor could be converted into a store front (I'm thinking small laundromat for the 8-plex? Nobody has W/D.)
- Asking $290K for the place.
- Near the downtown square - the town is undergoing a revitalization currently and there is a 12-story highrise going up in the next few years just one block down the road.
Most Popular Reply
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@Chris Jackson, the basic numbers look good to me. You need to run all the expenses to see how it nets out. In my area this would be a good deal. It also looks like there is a decent chance you will see price appreciation from gentrification. We dont have any really bad neighborhoods in my local area, but be very careful on location. If the neighborhood goes the other way it will have a negative effect on your property value. Be careful on doing fix ups to apartments to try to increase rents, as some areas will not show any difference in rental rates regardless of how nice you make them.