Cash Flow Property of the Day #2 - 4-plex in Weatherford

CASH FLOW ANALYSIS - PROPERTY #2

These are not my listings and won't list a specific address. They are currently Active when this post goes live. My numbers for analysis on tax, insurance and maintenance are approximate. I use the Investment Calculator on the GoodMortage website (I have no affiliation with good mortgage, just like the calculator).

4-PLEX FOR SALE in Weatherford (west of Ft Worth)

Location is in fast growing Weatherford (west of Ft Worth). The property location is more rural in nature, approximately 5 minutes to downtown Weatherford. There aren’t many 2-4 unit properties in Weatherford and properties like this are popular among renters that want more traditional renting without the cost of a single family rental.

Asking price of $525,000

Each unit is3 beds, 2 baths

Gross Monthly Rent is $970, $1050, $1075, $1095 - $4,190 monthly total (room to bump rents to $2,000) - $50,280 annual

Tenants pay electric. There is a well onsite, so no cost for water (owner or tenant). Owner pays electric to operate the well (nominal).

Taxes (based on $400,000 asking price) - $13,650

Insurance - $2,000

Maintenance - $250 per month (This won't be spent every month but a good amount for budget).

25% Downpayment of $131,250 (4-plex lending has been 25% down)

I don't include property management expense as I feel with technology and the amount of subcontractors/handy men/MLS marketing services, you can facilitate the management yourself. If you would like to include, add 10% of rent. I’m happy to discuss how to get around the property management cost.

Based on above #'s, this comes out to annual Cash Flow of $6,250 ($520/month).

Analysis: I would like to see more cash flow. Year 2008 is good for build and I do like the ability to increase rents. Low owner expense with well onsite. With that said, I would like to see a 4-plex yield $800-$1000 month on cash flow. I would say this property at $480,000 makes more sense.

IT’S WORTH KEEPING AN EYE ON, BUT PRICE SHOULD BE LOWER.

I have 15 years experience working on investment property transactions. If you need a broker to represent you as a buyer or seller, please consider using me........ Also, need to sell a property? Ask about Full Service 1% program (not 3% listing fee)....... OR $150 MLS Posting program on for sale or for rent properties - Ideal for Investors that understand contracts and just want the exposure.

Let me know any questions.....







Cash Flow, investment property, duplex, 4-plex, multi-family, apartments, four plex, cash on cash, cap rate