Potential 4 Plex Deal

[Thomas Fosnaugh]

Looking at a set of #4 four plexes built 1980 in Marion, IA - each unit is a 2 bed 1 bath 700-800 square feet. Here's the numbers.

Rent: $549 per month per unit (their numbers say $585 I think they include coin laundry) - $26,352 annual

Expenses: $11,200 total annual (I factored 60% off gross because landlord pays water/trash)

Taxes - $2568 annually

NO I - $15,152

List Price: $145,000 (per four plex)

Cap Rate: 10.4

Located in a desirable neighborhood/great school district surrounded by newer single family houses/condos.

I have the capacity to buy #3 or maybe all 4 of the four plexes depending on deal I can get (15-20 % down, 4-5% interest rate on conventional 30 yr. Loans mortgage payment on each $640/month). I'd be looking at around $620 cash flow/month per 4 plex (@ list purchase price).

Thanks for reading - any advice/ideas is greatly appreciated.