Advice on Deal

Four Unit Property

Listing Price: 110k
Total Rent: $1375/mth- fully leased month to month
Unit 1:$385/mth
Unit 2:$330/mth
Unit 3:$330/mth
Unit 4:$330/mth

landlord pays utilities of $250-300/mth
I own a condo worth 250k and loan balance of 165k. I think this a good deal if I can get him to sell it for 90-95k. Any thoughts by anyone would be appreciated.

the numbers add up. Good deal, I say go for it. Just to note a 4 unit is not commercial, which is convieniant in your situation, you can get a little creative with the financing.

I can’t tell from your post whether you have fully accounted for your operating expenses.

Utilities is just one component of your overhead; here’s a more broader list:

Property Management (if you decide to outsource this)
Vacancy and Collection
Real Estate Taxes
Legal and Professional Fees (Attorneys, CPAs, etc.)
Repairs and Maintenance (Interior/Exterior/Lot)
Utilities (electric, gas, water and trash)
Misc./Reserves for Replacement

If you tell me your operating expenses, I’ll tell you how it cash flows (or doesn’t).


Scott Miller