All Forum Posts by: David de Luna

@Rhonda Wilson thank you for pointing out my error. I'm SOO glad I turned to you guys for help. REBOOT! 

Annual Property Insur Premium: $1126
Utilities (garbage, water, power)  $2892
Management Fees                          $3120
Repairs/Maint                                  $2590
City Fees                                           $    55
Prop Tax                                           $7700
TOTAL ANNUAL EXP                    $17,483

$125k down payment leaves $575k to finance @ 4.5% with a $2863 monthly pmt that DOES NOT include prop tax or insurance. 

Gross rents remain at $63,600. Debt service is $2863 x 12 = $34,356 for a DSCR of 1.34.

Accordingly, my spreadsheet says I'm in the black $980 per month. So back to the original question - is this a good deal? Frankly, I hate the prospect of parting with $125k to do it but I'm asking is this a worthwhile deal nevertheless?

Rents can be raised to $5800 monthly to get to market rents, an increase of $500 monthly or $6000 annual, so that's something to factor. 

Apologies. This was my first post ever. Investment purchase of 4 Plex: Sell price = $700k. Annual Gross rents: $63,600; Annual Expenses (insur, utils, repairs/maint, city fees, management fees, prop tax): $17,483; 20% down pmt: $140k, mortgage: $560k, estimated pmt: $3650 (includes taxes, insur); Based on this, the NOI = $46,117 - total exp of $17,483 - debt svc of $43,800 makes for a DSCR of 1.05. I'm making $193 a month when all units are rented. CAP Rate is 6.6%. My question is if this is as good as it gets and I should be happy to grab this deal or is the profit too thin and I should pass and keep shopping. Do you need more detail? I appreciate your counsel deeply. Thank you.

I have an opportunity on a 4-plex. Actual current NOI (once the current vacant apt is rented) is 46,117. Debt service looks like it will be about $43,800. CAP rate is 6.6%. DSCR is 1.05. Seems pretty razor thin, but as long as it's fully rented, it does pay it's own way. If these numbers are not good, what would be better numbers for a buyable deal?

I have an opportunity to get a 4-plex. Actual current NOI (once the current vacant apt is rented) is 46,117. Debt service looks like it will be about $43,800. CAP rate is 6.6%. DSCR is 1.05. Seems pretty razor thin, but as long as it's fully rented, it does pay it's own way. If these numbers are not good, what would be better numbers?