4 Plex in Richmond, VA

[Milton Leland]

Hi There!

I am a new member, but have been following the boards for quite a while.

I own a few SFH Townhomes, and am looking to get into Multifamily. There is a 4plex available in Richmond VA that I am analyzing. I don't know enough to know what I don't know, but wanted to use this as a learning experience to see if the numbers look right.

Four Plex in Downtown Richmond Church Hill

Asking price: $298k 

2/1 with utilities paid for by tenant - washer / dryer hookups in each unit.

Currently has two 1 yr leases and 2 month to months

Area is a bit on the rough side, but is up and coming (this property is a bit rough, but the ones around it have been fixed up)

Been on the market since 2014 at various prices.

Rent for the area should be $600-700 for each of the apartments, and it is CLAIMED that the annual rent is currently $30,600.

I guess my questions would be 1. What are the average expenses on a building like this? It is an older home, but has had rehab in the 80's. 2. From all the analysis I have done based on other posts, it would seem to not be a great deal, but I still want to work the numbers, just so I know a good deal when one comes up.

Any help is MASSIVELY appreciated.

Thanks!