Sold $1,800,000 - 4-Plex
For the right person, this is a potentially awesome deal, either as an owner-user or as a pure investor. Here’s how it breaks down: They want $1.8 million. As tenants are already paying a reasonably high amount of rent (although well short of market rates), they should not be too difficult to negotiate out of the units. Also, the units, although in need of updating, do appear to be in pretty good shape. Thus, I am speculating approximately $200K for relocation/renovations, which puts you “all in” at $2 million. But the rents, once you are collecting current market, will be $3825/mo each or $15,300 total. This means you will be netting $5K/mo or $60,000 annually after mortgage payments, property taxes, insurance, utilities, etc. As you will be at $500,000 out of pocket, this means you will be getting 12% cash-on-cash return! It’s very hard to beat that these days—and in a very good, upside location at that!
Let me know if you want this property or want further info.
