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Updated almost 5 years ago on . Most recent reply
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4plex Offer- Nervous about the numbers. What are your thoughts??
Property
The building has three 2/1 units leased at $1,146 (Rent & storage/garage) a month. The other unit is ready for move-in. The location is downtown Westminster CO, new residential development and commercial real estate are on the rise. It’s 5 minutes to highway 36, and 20 minutes from Boulder, CO (College Town).
RentoMeter says I can get $1,300 a month, I looked at other similar properties in that area, and they are much newer with amenities.
Rental Income
The market may crash, we don’t know how bad just yet, but it’s going to take a hit. However, multi-family homes that are 4+units are they more likely to keep most of their value? One primary concern is how bad will unemployment be, and how does that affect getting tenets that can pay?
Is it smart to purchase now? What happens in June, July, and August when we ALL find out who can afford their rent? I would hate to buy this property only to find out that these tenants can’t pay rent because they lost their job.
Lastly, the building was build in 1962, how do I find out about lead paint and asbestos?
Loan
Listed 675K
Offer 630K
Target purchase price-650K
Down payment 10%
Rate of 2.6%
Monthly Cash Flow $1,472 /mo
Income $5,000 /mo
Expenses $3,527 /mo
CoC ROI 34.88%
Purchase Cap 8.21%
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Apartments in this area that rent of $1,300.00 Look like this.
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Most Popular Reply
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https://www.biggerpockets.com/...
These numbers are assuming some how you can get 10% down but you will likely need to put 25%. and that you can raise the rents to what you said. personally I would stay clear of this property but let's see what others say.