[Calc Review] Help me analyze this deal in Pearland, TX

[Rawn Wilson]

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I live in Pearland, TX and drive by this property all the time.  It is right off a busy street 2 houses down from a fire station.  It is a large 4 plex with all units rented.  Some with same families for years.  Almost a turn key property.  It will need a new roof and all wood siding replaced with something more durable (has rot).  I figure 30K for rehab.  I have walked the property in all units and they seem solid.  The owner is a local realtor who bought the property in 2006 for $265K and is now asking $485K.  Pearland is a very looked after area, and the High Schools are awesome.  If your a little league ball player, you have to be here. I worked with the calculator and the numbers seem to work at 400K.  I have 2 single family homes and a triplex in my portfolio and would like to add another multifamily, but don't want to get too excited and jump in too fast.  Not even sure they will take $400, but I want to get everything right and looking good before I try.  All separate metered and tenant pays all utilities. 

[Rawn Wilson]

I expect same rent as in report for a year until I do some upgrades on interior and raise it about 200 each. I have looked up current tax info. At 265k, they pay 6k. I budgeted 12k at a 400k purchase price. All in all it looks to me like 100k per unit and each bringing in over the 1% rule. In Pearland or Friendswood that is pretty good in my opinion.