@Michael Fischbach Flat roof, in Vermont with winter, I can't even imagine!! This place is definitely out of my price range, but I wanted to use it as an example to make sure I understand the concepts of analyzing a deal. I'm most likely looking for duplexes in the $250-$300k price range for my first purchase.
@Christopher Phillips Thanks Christopher. I've chatted with a couple of lenders so I'm getting a better lay of the land as far as financing goes. I've been told 25% down for an investment property from one lender. As far as the state of this 4unit, I completely agree that some money would be needed to rehab this place. When looking at this place, I think the rents are under market rates (probably b/c state of building). I think this place could conservatively gross $70k/year if the units were updated. Again, lots of capital to make that happen, on top of a over priced building, so I'm not touching it, but just wanted to chat about this to learn.
@Kevin Siedlecki Thanks Kevin for your feedback. The listing showed $8k/yr for maintenance, so you are right, the 15% of rent was actually lower than what the owner says it is. I'm not sure if that includes CapEx or not, but that would lower the NOI even more. 1 question for you though Kevin, how/why would someone get into a 4 unit like this, as all 4units are in that ~$500k range? They are in for over 6figures, so when would it make sense as an investor (ignoring the state of this building)? Would it need to be $300/unit/month so $14k cashflow yearly?
I completely agree that this is not worth it, hence why its still on the market for almost 3 months when a duplex went in under 3 days this past weekend. Thanks again for the comments so far, I definitely learned a lot in the past hr or two.