Rental Deal Analysis: Rochester New York 4-Plex

[Brandon Lashmet]

Hi all,

I would like to get your thoughts on some rental numbers:

Location: Rochester New York

Built: 1895 (recently remodeled roof, electric, appliances, windows, etc.)

Sale Price: $247,500

Property Tax: 8,300 per year

Interest Rate: 6.875%/ 30 yr.

Units: 4 units (2 bed, 1 bath each)

Sqft: 5274 sqft.

Projected Monthly Gross Rental Income: $4,000 (1k per unit)

Vacancy: 5%

Monthly Operating Expenses: $1,600

Monthly Cash Flow: $1,002

Appreciation: 2% per year

Income Increase: 1% per year

IRR at Year 5: 20.2%

CoC Return at Year 5: 18.7%

Equity Multiple at Year 5: 2.07 (3.68 at year 10)

Looks good to me, but anything else that we should look at?

This is pending a good deal on insurance, because a 7k per year policy kills the cash flow.

Hoping the high taxes/insurance provide a nice write off.

Any thoughts appreciated! :)