Quad-Plex: To Buy or Not To Buy

[Josh Neuhaus]

Hello All - 

I am looking at a QuadPlex in Iowa.  I have not posted a deal to analyze on here previously, but have done individual analysis on several properties on my own.  This one has me unsure if it is a hidden gem or a pass.  

Purchase Price:  $250k List, have negotiated a solid $230k potential purchase price.  Seller claims to have rejected a $220k offer.

Rent:  3 of the 4 units rent at $650.  The 4th rented out on a new lease 5 months ago for $700

Expenses:  Tenants pay all utilities

Shared Dumpster:  $35 per month

Property Taxes $4600 per year

Insurance:  ???? Estimating $2000 per year

Maintenance:  Estimating 5% of gross rent

Vacancy assumption:  5% of gross rent

Management:  Self Manage the property

Loan:  20% down with 15 year amortization and a 5.25% interest rate locked in for 5 years.  

Noteworthy Items:  Roof replaced 8-9 years ago.  Long term (4-6 year) tenants in 3 of the units which is why the seller hasn't increased rent to $700 per month.  Newer A/C units approx 10 years old.

Looking for advice, guidance, things to ask seller, things to look for in walk through, things I might be overlooking, etc.... If purchased, would you increase the other 3 units rent to $700 as well?