Fourplex Analysis

[Mark S.]

Fourplex foreclosure. Asking $194,900. Taxable Value (PVA website): $243,000. 5,000 square feet. Built in 1999.

Purchase Price (conservatively): $194,900.
Down Payment @ 20%: $38,980
Financed Amount: $155,920 @ 6% (conservatively) over 30 years
P&I Payment: $935/month

EXPENSES
Taxes ($2,753/yr): $229/month
Insurance (estimated, need to get quote still at $2k/yr): $166/month
Repairs/Maintenance: $200/month
Lawn/Groundskeeping: $100/month
Vacancy Loss at 10% (conservative, $3,360/yr): $280/month
Advertising: $16/month
Miscellaneous at $2k/yr: $166/month
Tenants to pay utilities, minus trash (absorbed in miscellaneous)

INCOME
Rents @ $700/month per unit: $2,800/month (Conservative)
Rents @ $750/month per unit: $3,000/month (Likely)

RULES / RATIOS at $2,800 / month.
50% Rule: $2,800/month = $1,400 to expenses, $935 debt service, $465 cashflow = $116/month per door. Pass.
2% Rule: Says property should sell for $140,000. Fail.
38.97% Cash-on-Cash Returns
13.55% Cap Rate

RULES / RATIOS at $3,000 / month.
50% Rule: $3,000/month = $1,500 to expenses, $935 debt service, $565 cashflow = $141/month per door. Pass.
2% Rule: Says property should sell for $150,000. Fail.
45.75% Cash-on-Cash Returns
14.90% Cap Rate

QUESTIONS:
1.) Is this a seemingly "good deal?"

2.) Same owners has two other quads on this street. Would it make any sense to contact them? If so, what is my approach? I essentially would want to see other owners' approach to managing property / neighborhood / get a feel.

3.) I'm not sure yet what maintenance might be needed. Assuming property does not require any immediate work, what is a fair offering price?

4.) Any advice if this should turn into a bidding war?

Thanks in advance, everyone!