Four-plex investment deal: buy 4 properties in one transaction. Two available [Code 801 & 802]
Note: seller wants either one buyer for both or for them to close at the same time. You can buy both or only one.
General about the area
- Good school district (rated C)
- 10 mins from many city amenities/plaza
- It's in an appreciating area.
- Working class / blue color tenants
- Some in this area are sending kids to private schools
- Trendy area, quick jump on the highway and you are pretty much everywhere in the metro area!
802
- 4-plex
- 2 bed / 1 bath units, 1965 built
- Fully Rented
- All kitchen appliances
- Parking: Behind building
- Owner provides Refrigerator, dishwasher & Range
- Common area electrical paid by owner
- Owner pays for water and trash
- Tenant pays for electrical and gas
- Tenant pays $55 per month for water. (only 1 water meter for property)
- Washer/Dryer Hookups located in basement
- No Pets allowed
- No smoking allowed
- Managed by a Property Manager
- Units have their own HVAC, gas meter, and electric meter
- Each unit has own storage unit in basement
| Property Specifications | 4 | Per Door |
| Bedrooms | 8 | 2 |
| Bathrooms | 4 | 1.0 |
| Square Feet | 4400 | 1100 |
| Year Built | 1965 | |
| Garage Size | 2 | |
| Schools Rating (on scale of A-C) | C |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $445,000 | $111,250 |
| Suggested offer (low) | $445,000 | $111,250 |
| Suggested offer (high) | $445,000 | $111,250 |
| Asking | $445,000 | $111,250 |
| Market Value (after improvements) | $460,000 | |
| Improvements (lower) | $18,000 | $4,500 |
| Improvements (upper) | $26,000 | $6,500 |
| Closing Costs | $4,450 | |
| Mortgage Costs | $4,450 | $1,113 |
| Other Fees At Closing | $3,800 | $950 |
| Total Cost | $479,700 | $1,113 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $111,250 | ||
| Financed Amount | $333,750 | ||
| Interest Rate (5/6 ARM) | 6.375% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $2,082 | ||
| Cash Outlay (Total Out of Pocket) | $145,950 | ||
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $3,892 | $4,392 | $52,704 |
| Rent (lower) | $3,392 | $40,704 | |
| Property Tax Rate (Approx.) | 1.4% | ||
| Property Taxes | $410 | $4,920 | |
| Insurance | $175 | $2,100 | |
| Repairs | $280 | $3,360 | |
| Variable-Cost PM | 7.0% | ||
| Property Management Fee | $272 | $3,269 | |
| Leasing Fee | 68% | $109.5 | $1,314 |
| Utilities | $125 | $1,500 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $1,517 | $18,200 | |
| Total Expenses (Fixed + Mortgage) | $3,599 | $43,186 | |
| Financial Analysis / Deal Attractiveness | ||
| Years: | 5 | 10 |
| Cap Rate | 3.2% | 4.3% |
| Net Cash Flow | $23,405 | $62,249 |
| Equity Increase | $121,437 | $272,616 |
| Total Gain | $144,842 | $334,864 |
| Average Cash Flow/Year | $4,681 | $6,225 |
| Average Cash Flow/Month | $390 | $519 |
| Average Gain/Year | $28,968 | $33,486 |
| Average ROI | 99.2% | 229.4% |
| Annual ROI | 19.8% | 22.9% |
| Projected Property Value | $559,660 | $680,912 |
801
- 4-plex
- 2 bed / 2 bath units , 1965 built, total sq ft 4,494
- Fully Rented
- All kitchen appliances
- Parking: Behind building
- All units have been renovated
- All units come with refrigerator, dishwasher, and range
- 2 leases have been signed recently
- Each unit has separate gas and electric meters
- Community Laundry room in basement
- Each unit comes with a storage unit in basement
- All units mirror each other.
- All bathrooms are in similar condition
| Property Specifications | 4 | Per Door |
| Bedrooms | 8 | 2 |
| Bathrooms | 8 | 2.0 |
| Square Feet | 4400 | 1100 |
| Year Built | 1965 | |
| Garage Size | 2 | |
| Schools Rating (on scale of A-C) | C |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $550,000 | $137,500 |
| Suggested offer (low) | $550,000 | $137,500 |
| Suggested offer (high) | $550,000 | $137,500 |
| Asking | $550,000 | $137,500 |
| Market Value (after improvements) | $570,000 | |
| Improvements (lower) | $18,000 | $4,500 |
| Improvements (upper) | $26,000 | $6,500 |
| Closing Costs | $5,500 | |
| Mortgage Costs | $5,500 | $1,375 |
| Other Fees At Closing | $3,800 | $950 |
| Total Cost | $586,800 | $1,375 |
| Financing Assumptions | |||
| Down Payment (%) | 25% | ||
| Down Payment Amount | $137,500 | ||
| Financed Amount | $412,500 | ||
| Interest Rate (5/6 ARM) | 6.375% | ||
| Mortgage Term (Years) | 30 | ||
| Monthly Mortgage Payment | $2,573 | ||
| Cash Outlay (Total Out of Pocket) | $174,300 | ||
| Financial Assumptions | Monthly | Yearly | |
| Rent (upper) | $4,300 | $4,800 | $57,600 |
| Rent (lower) | $3,800 | $45,600 | |
| Property Tax Rate (Approx.) | 1.4% | ||
| Property Taxes | $410 | $4,920 | |
| Insurance | $185 | $2,220 | |
| Repairs | $280 | $3,360 | |
| Variable-Cost PM | 7.0% | ||
| Property Management Fee | $301 | $3,612 | |
| Leasing Fee | 68% | $120.9 | $1,451 |
| Utilities | $125 | $1,500 | |
| Vacancy Rate | 4.0% | ||
| Total Fixed Expenses | $1,582 | $18,983 | |
| Total Expenses (Fixed + Mortgage) | $4,155 | $49,864 | |
| Financial Analysis / Deal Attractiveness | ||
| Years: | 5 | 10 |
| Cap Rate | 1.8% | 2.8% |
| Net Cash Flow | $15,334 | $48,334 |
| Equity Increase | $150,407 | $337,641 |
| Total Gain | $165,740 | $385,975 |
| Average Cash Flow/Year | $3,067 | $4,833 |
| Average Cash Flow/Month | $256 | $403 |
| Average Gain/Year | $33,148 | $38,597 |
| Average ROI | 95.1% | 221.4% |
| Annual ROI | 19.0% | 22.1% |
| Projected Property Value | $693,492 | $843,739 |
Disclaimer
Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice.
The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.