Evaluating a 4plex before placing an offer..

[Tom Kaz]

Just got back from looking at a 4plex in a suburb of Chicago (nice neighborhood). Building is completely tenant occupied with 3-2bedrooms and 1-1bedroom, unit comes with new boiler, water tank and new coin operated washer and dryer. Units are in pretty decent shape but the owner has not cared for the roof (which needs a full replacement along with gutters and whatever else that may need attention). Building is also next to some train tracks.

Asking price is 430k (high-side and been on the market for over 150 days)

Monthly expenses are $360-400 (tenants pay cooking gas and electric)

Monthly income is $4000.

After all is said and done I would be cash-flowing about $3-450 depending on the final closing price. This includes mortgage, insurance, taxes (13k), utilities and HELOC interest.

The owner is “motivated” to sell and plans on moving out of the state so I figured I had some leeway with my “offer”. I was thinking about offering $340-350k and see what happens, any thoughts on this offer (should I go lower or does that seem pretty low?).

Any input would be awesome! This would be my second 4plex!