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Updated almost 11 years ago,
4 plex in Tucson
I asked a similar question a few months back with regards to a 4 plex that I was considering buying in Glendale, AZ. Well this time, the property is in Tucson, AZ and I intend on owner occupying it and self managing. I did all the figures though based on if I wasn't living there.
Tucson, AZ
4 (1 unit owner occupied) - 2 bedroom/1 bathroom 900 sq. ft. units. Built in 1981, two floors, completely remodeled in 2013/2014. Currently unoccupied. Foreclosure. Monthly rents are based on comps in the area at $500/month.
Offer Price $145,000
Down payment $5075 (3.5% FHA loan)
Closing Costs $5000
Gross Annual Income $18,000
Vacancy Loss 10% $1800
Adjusted Gross Income $16,200
Property Mgmt: Self Managed $0
Maintenance/Supplies $1500 (estimate based on $500 per unit)
Water/Utilities $2160 (estimate based on $60 per month per unit)
Annual Mortgage $11,016 (includes insurance, taxes, and PMI in payment)
Estimated Total Annual Expenses $14,676 (mortgage/taxes/insurance/PMI, vacancy loss, maintenance, property management, utilities)
Estimated Annual Income $1884
Cash on Cash Return 18.7%
Of course I would want to refinance in a couple of years to get rid of the PMI. Also I am strongly considering sub metering the water. It would be easy to do since the place is currently unoccupied. Also all the units have washer/dryer hookups, so I may add those in so I can get a little bit higher rent.