Multifamily property - opinions please.

[Aleksandra U.]

Hi,

I am concidering a multifamily property located in West Warwick, ri.

Asking price $174900

Taxes $4789

Insurance - got quotes from $600-1200 depending on coverage.

2 units, each 2 beds, approx 800sf each. 

Upper unit occupied, $900 rent, currently month to month.

1st floor unit vacant seller stating rent was $1100.

Split utilities, I would have to pay water and sewer bill. No dishwashers, no laundry. 

Property is in good shape. Ready to be rented. Minor repairs and yard needs to be cleaned up. Plenty of parking. Roof might need replacement soon but no leaks or water damage so still ok. New plumbing, new water heaters. Gas heat in lower unit, electric in upper. 

Sellers notes on the listing: $4500 owner annual expense but no breakdown. 

I'm putting 25% down, that's the minimum for none owner occupied investments. 

I'm going to request water, sewer bill, schedule E and breakdown for $4500 to review income ad expenses. 

I think it is a good deal.. what's your opinion?

Thank you. 

[Alex Deacon]

@Aleksandra U. Just confirm all the expenses are correct and the rents are correct. Some owners may exaggerate. You need to find out also if all the tenants are paying currently. You may buy the property and 4 tenants are currently behind or being evicted. make sure you set aside enough for repairs also.

Good luck