New investor looking for advice on multi-family deal? Fair Price?

[Fredua-Agyeman Eugene]

Just getting started on my real estate investing journey and hoping the community can off their advice.... Is $625K a fair price for this deal?

4 family property, fully rented, good condition and all separate utilities. In a B+ neighborhood.

59,000 --> current rental income ( 3 of 4 units are month to month and below market rents. No rent control so ability to raise rents. Conservative estimate of $1,300/mth is fair rental rate)

-51,000 --> total expenses (Taxes= 12,200, Water =1,900, Insurance = 1,200, Estimated maintenance =5,900, PMI+Interest = 29800)

=8,000 NOI in Yr 1

I can get into the property with 5% down

CoC return = 19.4% ( 8,000 NOI /(31,250 down payment +10,000 closing costs)


Originally listed for $598K do to multiple offers now asking for 625K .

Any advice is welcome. Thanks everyone!

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