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Updated almost 4 years ago on . Most recent reply
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Help analyze this Quad in DC
I'm new to real estate and found this 4-plex in DC that I'm analyzing. The location is 0.4 miles away from public transit, a university, and bars. I'm unsure about maintenance estimates. The apartments have been renovated (though don't know how long ago and haven't seen them in person) with new appliances and HVAC. I don't know what it takes to manage a 4-plex and what kind of maintenance costs to expect. I assume the listing agent could tell me when the roof was last replaced, etc. I'm also a little worried about vacancies since 3 of 4 leases are ending.
Given my estimates the property will barely cash-flow so would need to reduce purchase price or add value by adding additional bedrooms.
The FHA 4-unit PMI is $688/month for 11 years and then it's removed which makes the deal sweeter down the road. But perhaps maintenance costs will end up negating any profits for 11 years...
https://www.biggerpockets.com/analysis/rentals/44ec01cc-689d-4b57-89ee-8687fc78508e