4 Unit Deal - Analysis and Advice

[Jahan Habib]

Hi Everyone,

This is my first post on BP! I need your advice regarding a Fourplex Deal that I am presently analyzing the numbers. The plan would be buy and hold.

Asking Price: $260,000

Down payment: $10,000

Cashflow: $3,300 per month (2 - 1 Bedroom Units; 2 - 3 Bedroom Units)

Now, let me run through the numbers on a monthly basis:

Principal + Interest: $1,157.79 ($250K @ 3.75%)

Taxes: $325.00

Insurance: $117.50

Electricity: $27.60

Water/Sewer: $322.00

Vacancy (10%): $330.00

Property Management: $100.00

Maintenance Allowance: $400.00

Net Income: $520.00

The property is located in an older industrial town in Western MA and the neighborhood is B-/C+. Presently 3 of 4 units are rented, with the 4th unit being renovated and will be rented for the new owner. No leases, just month to month.

Please review and do let me know your thoughts about this deal. What am I missing here?

I'll also post a formal introduction in the New Members Introduction forum as well.