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Updated almost 4 years ago,
Scrutinize my 6-plex deal analysis?
6 plex (all efficiency/one bedrooms)
Asking: 190K
Financing: Owner, 20%down, 30 year amortization with 15 year balloon (interest is still being negotiated)
Gross rents: $2870/mo. (Slightly under market)
Down payment: 34-38K (20%)
mortgage:700-800
Taxes: $200
Insurance: still working on it, estimate $150
Capex: $200 (7%)
Repairs $200 (7%)
Vacancy $86 (3%)
Electric: $250
Gas: $100
Water: $200
Trash: $80
Lawn/Snow: $100
Property Management: $200
_______cash flow $304-404/mo.
($604 if we self-manage in the beginning)
We plan to raise rents and/or add a utility fee ($300/mo extra cash flow), and add a 2 bedroom attic apartment with separated utilities ($700/mo. cash flow, will cost 30-40K).
It's in a small town where there are a couple of big factories, and there seems to be no shortage of (single) renters for small apartments... Definitely a cash flow play, but with forced appreciation.