Dayton (Kettering) 4-plex deal analysis

[Aamir Shah]

Hello BP members!

I have been eyeing some 4-plexes offered by a turnkey company in Dayton. 

Here is an example of one:

514 Wiltshire Blvd, Kettering OH 45419

Its 4 1bd/1ba rooms

I want to get everyone's opinion on how good a deal this is. I would be responsible for water, trash and yard maintenance. Turnkey company assessed this cost as 1800 a year. Is that too low? Here are the numbers I crunched. 

Purchase	$155,000.00
Rent	$2,100.00
Mortgage	$665.66
Taxes	$294.08
Insurance	$66.67
Vacancy (7%)	$147.00
Repairs/capex (10%)	$210.00
Prop Mg (12%)	$252.00
Maintenance	150
Total expenses	$1,785.41
Income w Mortgage	$314.59
Income wo/ Mortgage	$980.25
Cap Rate	7.59%
COC	11.33%
50% rule	$384.34

Note quite 100 a door, but appealing to me given the good school districts and location. 

[Brent Coombs]

@Aamir Shah, it's not a "deal", if $155k is market value. 

Hint: look up what it sold for last time, recently. Is $155k more than market value? 

[Oh, I've done that for you: It didn't sell at $134k at the height of the selling season last Summer, but now they want $20k+ more, in Winter?]

That's not to say there's no money to be made. But, if others are getting more than $100/m per door, then why aren't you looking for that too, right? [But if you've been convinced by the location and schools, am I wasting my words?] 

I can't speak as to whether $1800/y is too low for water, trash and yard maintenance, but given who's telling the story, what do you think? Good luck...