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Updated over 8 years ago,
I think I found a better deal this time, opinions?
Found a 4 plex in Pueblo, CO. Their asking price for the property is 169,900. Each unit is 1000 sq ft with 2br and 1 ba. Average rent on 2 bedrooms in this area is about 685 (sourced from rentometer, zillow, realtor, trulia, and apartments.com). All 2 br apts for rent right now are in the neighborhood of 800 sq ft so I think I could charge 700/month and be safe. Biggest downside to property is that it was built in 1923, but it looks decent from photos (haven't had a chance to check it out in person yet). I've got the following numbers as a rough estimate on income/expenses (these will be adjusted with more accurate numbers soon):
rental income: 2800
Vac rate: 10% (just a guess)
Taxes: 1150 (from assessor's page adjusted to purchase price)
Insurance: 1275 (adjusted based on my current home premium with new coverage limit)
prop mgmt: 10%
Maint/Repairs: 1200
CapEx: 366 (based on assumption everything in property is at half of its useful life)
My spreadsheet is telling me I have:
cash flow: 688/month
cap rate: 10.68%
CoC ROI: 83.45%
Total ROI: 163.27%
Does this seem like a decent rough estimate of what to expect with this property?
Thanks everyone for any/all input!