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Updated over 7 years ago, 08/04/2017
Help analyzing a quad, 50% rule still applies?
Hello all, need help seeing what I'm missing. I'm a loooong time reader/watcher and first time having a seemingly perfect opportunity fall into my own back yard/ neighborhood.
Been looking for a tri / quad forever in my little town and boom, this morning it hit the market.
4-plex, all under one roof.
210k sale price
8 bed / 4 bath *Four: 2/1's 700 sqft. No garages or car ports
Rents are $600/each, $2400 total.
Expen$e$:
P&I: $1055/mo (FHA 3.5% down @ 4.6APR for 30 years fixed) *can't put any more $$ down.
Trash: $40/mo.
Prop taxes: $3500/annually or $292/mo.
PMI: $165/mo.
Vacancies: (Est 10%) $240/mo.
Management: (Myself) $0/mo.
CapEx & maint: Estimating 50% right? *This is the sticking point, everyone says its a good rule of thumb but does it apply to quad's? as that's $1200/mo., seems outrageous for a small quad under one roof. Current status of prop is descent, no major cap-ex in sight.
So if that adds up i'm negative $-592/mo.
Help me confirm if this is correct or if i need to not count 50% to future cap-ex & maintenance.
Thanks!