General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago,
Is this a good deal on a 4 plex? (for long term rental)
Hello, I am new here, I need some eyes to see if my analysis is correct and if you all think this is a good deal?
I am looking at a 4 plex deal that is fully rented. Here are the numbers: all in Purchase price $95,500 Gross income is $21,660 this is facturing in a 5% vacancy
Expenses: Property taxes $2,260, Insurance $450, Property management $2,200, Repairs and maintenance 5% $1,140, Utilities $2,025, Lawn & grounds keeping $600, Capital expenditures & miscellaneous, 5% $1,140. Total yearly expenses $9,815. I plan to finance it with 25% down $23,875 With a monthly payment @ 5% interest will be $385 a month $4,620 a year. So that brings total operating cost with debt service to $13,303 a year. $21,660 - $14,435 = $7,225
So my yearly cash flow is $7,225. With $23,875 down payment that gives me a %30 ROI.
What am I missing? Does this look good for a long term hold? My goal is to create cash flow.
All feedback is welcome, looking for some confirmation before I move ahead with this deal.
Thank you.