Fourplex Deal Analysis

[Eddie Quispe]

Hello Everyone,

I was wondering if anyone can look at this deal and share some feedback, concerns or questions. I am trying to figure out if the numbers will work and if I should put an offer. I appreciate any help. Here are the details:

Asking Price: 389,000

Down payment 25%: 97,250  Loan Interest: 5%  Loan Term: 25 Yrs

Units: 4 (2 Units are 3/2  - 2 Units are 2/1.5

Total Gross income: 3,700

Total Operating Expenses: 18,119

Year Built: 2006 Located in a nice part of town

Thanks!!!

Eddie Q.

[Joshua De Young]

I have been seeing some banks require you factor in an additional 5% for "cash reserves" now as well. 

5% on the loan?  Is this because you are putting down 25%?  I could do a lot of damage with almost $100K instead of tying it up in only four units....