Thanks guys for the advice!!!!! I decided to not go forward with the opportunity.
Just today I came across the following deal. It seams like a good deal. Cash flow and good return. My only hesitation is that it's in San Antonio which is 1 hour and a half from where I live. Ideally I prefer to have my first property close by in Austin. Is this a valid concern?
Purchase Price: $370,000 (both properties)
NOI: $32,138
4-plexes :
A
o Unit 1 - 2/2
o Unit 2 - 2/1
o Unit 3/4 - 1/1
B.
o Unit 1 - 2/2
o Unit 2 - 2/1
o Unit 3/4 - 1/1
Details:
· Occupancy: 100% leased, All leases are currently month to month except A, Unit #3 (current 6 month lease in place expires 7/1/16 then goes month to month). Long term tenants in place dating back to 2006, 2007, 2008, 2012, 2013, & 2014. Refer to rent roll.
· Rents - slightly below market rate in which current owner has not raised the rent due to each tenant's loyalty, long rental history, & responsible of upkeep to each unit.
· Insurance: Landlord/owner has active insurance policies on both properties. The cost per year is approx. $784.00 for each property.
· Utilities:
· Electricity is individually metered. There are 5 meters on each building - 4 for each unit & 1 for the outside of property. Each tenant pays electricity. The owner/landlord pays for the outside of building (security lights).
· Water is a common meter for each property, the bill is sent monthly to landlord/owner. Each tenant pays $35.00 a month for water in addition to rent.
· 2 Garbage bins (1 for trash & 1 for recycle) for each building - paid by landlord/owner
· Property management: fee: $150.00 per month for A, $150.00 per month for B
