1st Rental Purchase, Buying Fourplex

[Chris Nerio]

Hey everyone, I'm looking to possibly put an offer on this deal for a fourplex in St. Louis. 

Purchase Price: $225K

DP: $45k (20%)

Annual Gross Income: $27,060

Total Operating Income: $27,648 (less vacancy at 4%)

Total Operating Expenses: (including 5% for Maintenance, 10% for property management, taxes, insurance)

NOI: $17,053

Annual Cash Flow: $2498.60

Monthly CF: $208 (less mortgage (principle, interest,  @ 5.25%, 20 year ammort.)

My estimate for my investment is about $50,000 all in. (closing cost, dp, minor repair)

So that puts my cash on cash at about 4.99% correct?

And cap rate is 34%?

Am I doing the math correct? My concern is that it seems like a lot of cash out of pocket for minimal monthly cashflow? Am I missing something?

Any thoughts on the deal?

Thanks everyone!