QuadPlex Deal Review...

[Ben W.]

Hi all,

I am new and looking at buying my first investment property. I am looking at a quadplex built in 2017 in the downtown area of a city I know pretty well. 

Gross rents = $101k a year. 

Insurance = ~$1300 a yr.

Taxes = ~$12k a yr.

They are asking $1.3 million, I'd like to get them down to $1.1, but figure $1.2 is pretty likely.

Thoughts? 

From my end using the 50% rule I figure ~$45k cash flow after all the expenses and property management. Because it is pretty turnkey and new, there is not a lot of maintenance currently. I am looking it as ~4% return in cash flow on my investment after investments, plus some possible long-term appreciation given the growth of the city/area.