Is this a good deal?

Could someone please critique this possible deal for me? I’m new to this so if it looks like a bad deal - let me have it.
I’m looking at a 4-plex with an asking price of 171k. I would like to give no more than 163k for it with 10% down. So here is what it looks like:

Rent 4x450 - $1800
Mortgage- $977
Taxes & ins.- $145
Vacancy@5% - $90
Repairs/Maint. - $150 (guess??)
Misc. @ 5% - $90
Utilities paid by tenants

Thanks for any advice,
tajer3

  1. You say you are new, and don’t have management fees built into your figures. I’m not saying you couldn’t handle the management of a 4-plex, but it’s usually something better left to experts (at least in the beginning), IMHO.

  2. Can you only put down 10%? I know some places treat a 4-plex as commerical and require at least 20% down, but I don’t know your specific situation.

  3. Is there any deferred maintenance issues?

  4. How are the tenants? IOW, have they been there a while, or relatively new? If new (or maybe just for your own sake), you may bump the vacancy factor to a month or more (8.33%).

  5. I usually budget 3-5% of gross rent for monthly maintenance reserves, depending on the age of the property, andother issues.

  6. Do you know if your jursidiction requires a rental tax? Or is that in your overall tax/ins figure?

  7. Double check the insurance and taxes to be sure. In my area, property taxes (~2.5%) and insurance tend to really eat at the bottom line.

Other stuff looks good, although, for “misc”, I usually only put 1-2%.