Four plex Deal evaluation

[Umar Farooq]

Looking at purchasing 2 four plexes. 1 ideally through the FHA to keep down payment low, the second one still trying to figure out if to owner finance or lease or conventional loan with standard down payment. Goal being to put as least amount of money down as possible.

This will be my first investment property. We used to own a home but sold it a year back and now instead of purchasing another home rather build our real estate portfolio.

Asking price is $725,000.

All units are occupied. One building is 2 bedroom units the other building is 1 bedroom units.

Total rent is $6,440 but potential is to be $7,100+ to bring it up to market with minimum work.

Vacancy is low in the area with demand being higher than supply.

Monthly seller provided expenses are $2,000 including insurance, taxes and water. Tenants pay electric.

What do you all think? Anything I’m missing? What would you do different?