First Deal: 4 Plex & Duplex

[Matt Kauffman]

Hey BP folks, I"m a newbie but have been an avid reader but not an avid poster on the forums.

Here's a deal I'm working on right now, my first!!!

Same seller for both properties

4 Plex

Price: $130K

Three 2 bdrm 1bth units, One 1 bdrm 1bth unit

3 occupied, 1 vacant - (2 bdrm unit vacant)

rents are $550, 750, & 750 - potential rent of vacant unit is $850 - 950/mo

Gas and Electric are included in rent price

Utilities are budgeted with clauses in contacts that over a certain usage extra utilities go on the rent

Budgeted Gas & Electric are $130/mo/unit for both utilities

Taxes: $3462/yr

Insurance: $600 - assumed to be going up after appraisal

Water/Sewer/Trash: $137/mo

Steel roof just installed last year, siding have done on property, vacant unit has never been rented since renovation - completely new kitchen with new appliances along with an overhaul of the living room, bedrooms, and bath w/washer & dryer hook ups.

30yr fixed loan @ $566/mo pymt

Duplex

Price: $64900

Two 3 bdrm 1 bth units - small bdrms

Rents: $750/unit - both occupied

Gas & Electric included in rent - same clause in contract as above - $135/mo

Water/Sewer/Trash: $78

Taxes: $970/yr

Insurance: $400

30 yr fixed loan @ $283/mo

I think I can Net Cash flow this place around $200/unit/mo after I've set aside funds for maintenance and replacement reserves at around $300/mo total for both locations. Duplex has more deferred maintenance. Let me know what I'm missing or not figuring. Thanks.