Hey Bigger Pockets community. I'm looking for advice on purchasing a fourplex in Colorado. This is my first time purchasing so any advice is greatly appreciated!
About the fourplex: It's in Colorado in a lower income neighborhood and was built in 1978 I believe. The previous owners have owned it for many years. They have recently updated water heater, furnace's, roof (last 4 years), and have kept the building fairly well maintained compared to other's in the neighborhood. Below are some transactions for other similar unit in the area; however I do not know the condition they were sold in:
2014 $207,000
2015 $275,000
2015 $175,000
2016 $205,000
2016 $200,000
About Me: I'm 28, originally from Colorado but living out of state. However I travel back and fourth every three months. For the last 4 years I've been building a business, so now that it's kicking off some cash, I'm using that money to invest. I'm planning on investing for the long term and looking to pickup more units if this one goes well.
The Unit:
Sale Price: $240,000
Unit 1: Vacant possible $725 in rent
Unit 2: Vacant possible $650 in rent
Unit 3: $625 8 months left on lease
Unit 4: $625 11 months left on lease
Note: The owner is not actively trying to rent out unit 1 or unit 2, and in the neighborhood there are only 3 for rent signs out of 50 fourplex buildings.
Expenses:
Water: Unknown
Sewer: Unknown
Trash: Tenant responsibility
Electric/Gas: Tenant responsibility
Management: 9%
Loan:
Downpayment: $48,000
Interest Rate: 5.125% (Investor Loan)
Monthly Payment $1172
What does the Bigger Pockets Community think?
