6 units 124k deal analysis

[Jordan Vires]

Greetings,

I am looking at deal as follows:

6 plex with total rents of $2300 per month.

4 two bedrooms and two efficiencies.

Owner willing to finance 15%.

The building is currently separately metered however owner pays water, trash and gas bill for hot water heaters. The total utilities owner pays per month is $170.

The payment on property would be right at $700 per month.

Insurance will be about $150 per month and taxes are $190 per month.

Does this seem like a good deal?

Please help me if you can. Thanks

Jordan

[Bill Jacobsen]

The so called cap rate is the net operating income divided by your cost of the property. The net operating income is your rents - your operating costs. I plugged in my numbers in some places so it might not agree with your numbers.

Bill