4plex
I need some help.
Im currently looking to purchase a 4 plex in Las Vegas Area. It's going for $310k
with 5% down. I was quoted at 7% interest rate. My fico Score is 730. Is this a good rate? The rents are an average of $550 and the water bill is $100 and the trash bill is $100 per month. The management company is charging me 8% of rents collected. And taxes and insurance run for about $330 a month.
how do i find out if this a goodpurchase? 
thanks
Assuming a 30 year loan, you should have a montly PI payment of 1959.32. With the tax, insurance, and utility numbers you quoted we are up to 2489.32.
Total collected rents are 2200 with you getting a check for 2024 @ 100% occupancy each month. Even if you never have to repair anything (which you will), never have a destructive tenant (which you will), you will still lose about $500/month.
In Chris's book of positive cash flow, this is a poor property to purchase. That, however, is just my opinion. Take it for what it is worth
-Chris
[addsig]
Quote:
On 2003-11-02 01:22, sdirick wrote:
I need some help.
Im currently looking to purchase a 4 plex in Las Vegas Area. It's going for $310k
with 5% down. I was quoted at 7% interest rate. My fico Score is 730. Is this a good rate? The rents are an average of $550 and the water bill is $100 and the trash bill is $100 per month. The management company is charging me 8% of rents collected. And taxes and insurance run for about $330 a month.
how do i find out if this a goodpurchase? <IMG SRC="images/forum/smilies/icon_confused.gif"> thanks
Gross Rents $26,400 less 7% V and C loss= $25608 less mgmt =$23,736 less expenses that you know about leaves you with $17336 a year and debt service of about $24,000 a year. And you have no reserves or other expenses in there.
Now - what we do not know is what appreciation you expect and if rents can be drastically raised.
First blush - not a good deal.
By the way your FICO score is V. Good.
Gregg
[addsig]
i live in vegas, 310k is extremely high for a 4 plex. scan the HUD list, there was one listed a few months ago for 124k but it needed fixing. also, there are a bunch on the northeast side of town for under 220k... you can charge section 8 $750 per month and turn a nice profit, if you want more info, let me know....
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