Help with 4plex in So California

[Robert Fuhs]

I'd love the wisdom of the BP brain on this one. Here are the numbers:

4 Plex in So Cal Desert Empire.

Asking $269,900.

3 units are 3/1, 1 unit is 2/2. Recently updated. Pictures on line look pretty good. I ahve not been out there to see it.

All units currently rented. Rent total= $2725. $625-$775 a month.

Expenses per month:

taxes: 196

Insurance: 100

Vacancy: 218 (8%)

Utilities: 350 (trash, water, sewer) Tenant pays all other.

Repair/ Maint: 137 (5%)

Cap Ex: 137 (5%)

Mgmt: 272.50 (10%)

Total expenses: 1410.50

Principle+interest: 1038 (assuming purchase at 269900 and 25% down, 4.6% loan)

NOI=1314.50

Cash Flow= 276.50

COC= 0.4%

Are my numbers right? I would have thought I'd get a decent return on this one, but it's not even 100 per door. And the COC is awful. Am I missing something? Thanks!