Updated over 10 years ago on . Most recent reply
4-plex down the street.
Just wanted to do a sanity check on my numbers here. There is a 4-plex down the street from the duplex I live in right now. Here are the numbers:
| Expenses | |
| Vacancy (5%) | -$105.00 |
| Cap Ex (8%) | -$168.00 |
| Water (Based on living in the area) | -$50.00 |
| Management (Will self manage, but still included) | -$168.00 |
| Property Taxes (estimated from 2015) | -$250.00 |
| Repairs (8%) | -$168.00 |
| Electricity (Based on living in the area) | -$200.00 |
| Insurance (Overestimated based on first duplex) | -$150.00 |
| Principal and Interest (4% on 114k) | -$544.25 |
| Total | -$1,803.25 |
| Income (Based on area) | |
| Unit #1: 2 bed 1 bath | $800 |
| Unit #2: 2 bed 1 bath | $550.00 |
| Unit #3: 1 bed 1 bath | $450.00 |
| Unit #4: 1 bed 1 bath | $450.00 |
| Garage (2 spaces) | $100.00 |
| Total | $2,400.00 |
My plan is to offer a low-ball cash amount and then refinance after some repairs are done. ARV is anywhere from 170k to 190k. I think this is a no-brainer, but I wanted to get a second opinion.
Thanks!