yeah as title. i have a mortgage on my own house. recently a 4plex on fb caught my eye. theyre listing for 300k, new construction, on i think 1/2 acre or 1 acre mostly seems a big dirt parking lot in front. 1800sq ft. they claim the units rent for 1050. obviously these are small units 1 bed 1 bath, doing the math 1800/4 is 450 sq ft per unit. they look nice, being new construction, albeit spartan inside, metal building, concrete floors, washer dryer hookup. semi rural Oklahoma but about 80-100 miles from dfw. they also say all units are under 6 month lease (it seems to be friends of theirs, i'm guessing, as they mentioned it was full "despite not even listing it yet"?) for 1050/month all bills paid. they claim this cash flows 3600/month (4200-600). the math on that is they say electric is 90 unit, trash and water is 50 each for all 4 so theres your 600 and say they can provide receipts on all this. it's located a handful of miles, about 6-8, outside the nearest small town with a wal mart etc.
one thing is it seems better apts, in town with 600-800 ft, go for more like 1k no bills paid. even adjusting for the all bills paid part, i feel like 1050 is aggressive on these. otoh near me some crappy tiny apt with mold and everything go for 750, and these are much nicer than that. i think 700-800 would be an absolute floor on what they could rent for.
i guess i just have no idea for example, insurance? is it more expensive being 4 tenants? they claim they pay 105/month insurance. this seems pretty low, granted its in the ballpark of what i pay on my own 1100 sq ft house, but i just feel like a 4 plex would be higher? how does the fact youre renting to tenants play into the insurance?? i would assume it might be much higher?
another maybe odd thing i worry about is it's a bit in the country, with 4 doors right next to each other i worry the tenants could fight, drama, drug deals, noise complaints, i have no idea but it just seems a bit strange. the layout just seems very conducive to drama, 4 door out front literally spaced ten ft apart with nothing else directly around and one big parking lot out front.
another concern i have is, i understand there are laws limiting how many people can be in apt. these being 1 bed 1 bath, thats room for what 1 couple, and one child at most? i worry what if tenants try to move a bunch of people in? i'm figuring it being rural ok, enforcement of laws/codes/taxes etc is gonna be lax as it gets, but still.
also how do the taxes work? they claim taxes are 100/month. again, seems aggressive but slightly plausible being its outside city limits. are the taxes more on rentals units?
what does anybody think? i really am a bit clueless.
