BridgePort CT QUAD analysis/ critique?

[Victor Steffen]

Hello BP Community,

Found this 4-plex 20 minutes from me. My numbers are below and I was hoping to receive some feedback/critique on the accuracy of the pro-forma. Note- I evaluated this as a house hack deal where I would be living in one of the studios, allowing for financing through FHA. I also ran my numbers as if I would be paying rent, just to keep it simple.

Description: 4-plex in Bridgeport, CT (studio 1 bath, studio 1 bath, 3bd 1ba, 3bd 1ba) fully leased right now through June 2018.

List Price: 200,000

Studio Rent = 750

3bd 1ba Rent = 1350

Asking Price= 200,000

Rent Revenue/month= 4200

Down Payment (5%)= 10,000

Rehab= 2000

Closing Costs estimate= 2100

Cash Needed= 14,100

Monthly expenses= 3193

Cash Flow= approx 970/month

MONTHLY EXPENSES:

Mortgage= 1015 (5% down with 30 year fixed rate at 5%)

Water/Sewer= 100 /month

Electric= tenant

Gas= tenant

Property Taxes= 667 (tax data from zillow)

Garbage= 100 /month

PMI= 191 (1.15% purchase price)

HOA fee= 0

Management fee= 420 (10% monthly rent)

Vacancy= 210 (5% monthly rent)

Maintanence= 210 (5% monthly rent)

CapEx= 210 (5% monthly rent)

Am I missing anything major?

Thanks in advance for any feedback.

[Jason Hanis]

Victor,

I think your Water and Sewer is a bit low.  I have a 3 unit property (3 x 3bd, 1 bath) in Bridgeport.  I pay just shy of $200 for water and about $250 per quarter for sewer.

For taxes and property information go to: http://gis.vgsi.com/bridgeportct/

While I haven't had any vacancies in my property yet, i think your vacancy rate is a bit low.  with two studios, i would expect a bit higher turnover.  I used 12% for my property analysis (we are in West End).  Think about it, just one month of vacancy for your larger unit will be about 3%.  If you have a vacancy that lasts more than a month you are already over your vacancy expense for the year.  Maybe someone else can weigh in with their actual vacancy expense for properties in Bridgeport, CT?

Lastly, based on what I'm experiencing.. unless the place you are looking at has been recently renovated, I think that your Maintenance and Capex are low. Unless of course you plan to be your own handyman. If that is the case then you might be ok.

Best of luck!  I hope that I was of some help!