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Updated over 4 years ago on . Most recent reply
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St. Louis Fourplex -- Too Good to Be True? Deal Analysis Help!
I've found a property with numbers so good that I'm wondering if I've analyzed the deal incorrectly. I'm a newbie and would really appreciate the feedback! Here's the property: The St. Louis Fourplex (I'm not ready to pounce as I'm still learning the basics).
Can anyone confirm whether my numbers are correct? What am I missing that would make this NOT a good deal? Note that I am not located in / familiar with St. Louis--maybe this is a terrible part of town? Thanks in advance!
Some key numbers extracted from the screenshot below:
- Purchase Price: $95k
- Rental Income per unit (monthly): $670 (based on myrentrates analysis for 1BR 1BAs)
- Units: 4
- Repair Costs: $15k (total guess, but even with a $100k rehab/repair cost the ROI would be 12.9%).
- Cash Flow per door: $340.29
- Cash Flow, all units: $1361.16
- CoC ROI 39.26%
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Most Popular Reply
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Always best to find local investors to get their view points on the area.. as well as come out to check it out and see and feel it for yourself. Money in real estate can be made in any market it depends oh how deep your stress levels are. That area is a little shaky but guaranteed there is some good tenants there and due to their finances thats the only area they can afford. If its a place you can see yourself living then its a buy if not keep going. With the rehab cost that will depend on the inspection but in rough areas you can expect defer maintenance and with that 4 unit an $100k would be about right if you had to update all the major systems ( roof, tuck pointing, windows, HVAC, electrical, plumbing, etc ) . Numbers might look good on paper but come see it for yourself to see if it makes sense Good Luck :!