Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

1,518
Posts
812
Votes
Hadar Orkibi
  • Rental Property Investor
  • USA / NZ
812
Votes |
1,518
Posts

Fourplex In Houston - Feedback please

Hadar Orkibi
  • Rental Property Investor
  • USA / NZ
Posted

Hi Team, I been presented with this "Deal" in Houston Tx. its a 4plex in an area around the universality of Houston. its lower socioeconomic area which I been told gradually been transform. 

The property is 100% occupied.

To the point, I would appreciate some feedback about the numbers. considering that the property will probably require about 15K rehab and the closing cost, the cash input is 100k. So i see the cash on cash been to low.

Please refer to the report here for the details:

https://bp-v-newproduction.s3.amazonaws.com/upload...

And Here is the listing page:

https://www.trulia.com/property/3233294900-3335-Tu...

Purchase price say $300k

Annual Operating Expenses: $8594.
This total doesn’t include the Utilities "Owner pays trash/water” — So i allow $50pm.

Please note: that I calculate NOI with including 8% for Maintenance + 8% for capex + 8% vacancy + 10% for property manager.

I also allow to spend 15k on recladding this property and replacing all Water heater and HVAC.

As you can see from the attached PDF file, the total cash needed including Down payment, Closing cost and work is 100k. The cashflow is $250pm.

From what i can see the NOI need to be close to the 1% rule for the Cash on cash to be over 10% on this deal.

Any feedback would be much appreciated, Im keen to hear (disregarding the location) at what purchase price considering the expenses and income YOU think its would be a good deal.

  • Hadar Orkibi
  • Most Popular Reply

    User Stats

    3,790
    Posts
    4,454
    Votes
    Cody L.
    • Rental Property Investor
    • San Diego, Ca
    4,454
    Votes |
    3,790
    Posts
    Cody L.
    • Rental Property Investor
    • San Diego, Ca
    Replied
    Originally posted by @Hadar Orkibi:

    thanks @Cody L., at 190k purchase price the cash on cash would be 20%. 

    The NOI on 190k is 12.6% Cap. Do you fined it achievable in today's Houston market?

    Here is the amended link:

    https://www.biggerpockets.com/calculators/shared/625572/b34b3bb4-97ce-43b1-a0f9-3924b70a828f

    NOI is another uless metric in class C. Who's NOI? Yours? Theirs? NOI can be fudged to say anything -- and that's if you're not misleading.

    If your goal is a 10 CAP property I can sell you tons based on my numbers and make a killing

    Loading replies...