Quadplex In My Area

[Paul Ritter]

Recently I have came across a quadplex for sale in my area. The asking price is $450,000 and the building is sitting on 6.21 acres. There are 4 two bedroom units that are for sale so that would give me the potential to have 8 tenants (Pretty obvious).

Lets say I went in on full asking price of $450,000 the numbers would look a little something like this:

$50,000 dollar down payment (or 11%) so I would obtain a $400,000 dollar loan

If I got a 15 year fixed at 2.59% that would cause my PITI to be around $3,398 a month

The units could rent out for $1,200 dollar a unit while I also lived in one with a roommate

This would bring my total income to $4,200 NOT including myself (living for free)

($1,200 x 3 = $3,600 + 600 (my roommate) = $4,200)

After subtracting my months PITI I will be left with $802 dollars for maintenance and capex

After checking with the zoning laws you are allowed to build on the remaining 6.21 acres

The big kicker with this deal is that the foundation is already poured for the next quadplex to start construction

I have a good relationship with a builder and I know that in the future I would love to build another quadplex on this lot

Before you look at these questions I would like to give you some more information about myself. This would be my first investment property so this is why I am looking for your opinion. I have just received my real estate license so I am not clueless to the world of real estate. I do not have much experience with investing yet but I am hoping I can get some feedback from you guys. Thank you in advance!

I guess my questions would be to all of you are:

What other due diligence should I preform on this property before pulling the trigger?

Would you stick with a 15 year loan or maybe opt for the 30 year loan?

What do you think about this deal overall?

Please add any other feedback that you might find helpful. I am open to all suggestions and love to learn from you guys