All Forum Posts by: Humberto Garcia

David Beard they are 2 bed 1 bath and all are currently leased and have been for over a year. That was one of the pluses for the property it has a low turnover and yes they pay all the utilities. That's why I'm highly considering buying this property. In my opinion you could easily raise the price but it would probably create a higher turnover

Iv'e heard that investors aim for 10% cap rate on multi units but I could be wrong. Brandon Turner What would you pay for this and why>

Thanks guys, I do my investments in real estate with cash either mine or others. It makes things allot simpler especially with negotiating the price. To be honest I haven't invested in multi units before only single family homes that's why I'm asking. Ben Reese there is an exact 4plex right next to it that is charging 450 for rent but they have remodeled. The good thing about the rent being so low is low turnover and there always occupied. Let's say I add another 2000 for yearly maintenance the cap rate is at 12%.

How am I not using leverage?

I have the option of buying a 4plex at 94,000 (Cash) that's generating 1,460 a month and 17,520 gross yearly. They all are occupied at 365 a month and are paying there own utilities. My NOI would be 13,156 and I got that by subtracting 10% for managing, $1000 for insurance, and taxes where $1612. Of the bat my cap rate would be 14% but there are some minor repairs probably around $2000 but I would't repair until the tenants leave. Should I buy?

I have the option of buying a 4plex at 94,000 (Cash) that's generating 1,460 a month and 17,520 gross yearly. They all are occupied at 365 a month and are paying there own utilities. My NOI would be 13,156 and I got that by subtracting 10% for managing, $1000 for insurance, and taxes where $1612. Of the bat my cap rate would be 14% but there are some minor repairs probably around $2000 but I would't repair until the tenants leave. Should I buy?