4-plex, Good Deal? I think so! - Posted by Adam Olson
Posted by Adam Olson on December 21, 1998 at 23:30:03:
4 plex, 10 years old. Good shape.
2 bed/1 bath/garage per unit.
rent $440 for 2 units and $450 for the other 2 units
Is this a good deal, I think so!
Reason I want to buy: to live in for a few months then rent all units and keep as an asset!
4-plex listed price $140,000.00
Out of pocket (OP) $3,500.00
Rents and Dep. $3,500.00
Rents, Dep. and OP = 5% down payment
Gross Rent: $21,360.00
Minus 5% vacancy $20,292.00
34% operating expense (includes tax) $6,974.00
Net Operating Income $13,318.00
Less Annual Debt Service $10,620.00
7% at $133,000, 30 yr, $885/mo
Cash Flow/year $2,698.00
Cash Flow/month $224.80
Does this sound like a good deal to everyone?
Listing price is actually $142,000 but I was going to initially offer $127,800. However, even if the seller only goes down to $140,00 from my calculations above, it seems to be a go on my end.