4-Plex

[Jimmy Park]

Hi all - wanted to get feedback on a particular deal, would really appreciate any input as I would be a first time purchaser. Details below, numbers are approximate:

+ Asking Price: > ~$400,000

+ Rental information (all 3 bdr 2 ba, 100% occupied currently): 2 units at $950/month, 2 units at $1,000/month >> Gross Rental Income = $3,900/month

+ Financing info: conventional, 25% down, 30 years >> $1,700/month

+ Property Tax: ~$760/month

+ Insurance: ~$440/month

+ Other operating expenses: seller shared that it's ~$350/month

So it looks like assuming a deal at $425k, I'd be looking at ~6.5% cap rate.

(1) Are the P&L items reasonable?

(2) What are the important questions to ask? (I know I need to ask for the historical schedule E's, schools are highly rated in the area, but unsure about what the most important details would be in making a purchase)

Thanks for your help in advance!

Jimmy