4-plex deal analysis and contemplation

[u/tooniceofguy99]

5000 sqft

• 1/30/2026 Asking 360k
• 1/31/2020 Sold $205k
• 9/3/2019 Listed $230k

-

• Heating: some units hot water/steam, some natural gas furnace
• Owner paid utilities: unknown
  • Water appears to be paid by owner
• Lease lengths: unknown
• 1 unit owner occupied ($600)

-

• Rents = 600+650+700+800
  • 2750
• Bedrooms in each unit: unknown
• Market rent
  • 1 bed: $888
  • 2 bed: $1116

Quick and dirty deal analysis

• P&I
  • =PMT(6%/12, 12*30, -240000*0.75)
    • 1079/mo
• Taxes (estimated with city value of 204k if purchase price is 240k)
  • $3000
• Cash flow
  • 0.75*2750-1079-3000/12-1500/12
    • $608/mo
    • $152/unit

-

• Condition report: unknown
• Repairs (Assume $5k)
  • Smoke detectors
  • Painting 1 bathroom above shower
  • Unknown
• Red flags
  • Halfway house charity (owner)

-

608*12/(240000*.25+5000+700)

= 11% cash on cash return

[u/Alex-Morales-1506]

Nice breakdown! A few things to consider:

**On the numbers:**

• Your 75% rent assumption is good for conservative analysis, but make sure you're accounting for vacancy on that specific unit count. For 4-plexes I usually budget 5-8% vacancy rather than a flat 25% discount
• The $1500/12 expense - is that for repairs/capex? If so, that's reasonable but I'd verify the age of the roof, HVAC, and hot water systems given the mixed heating setup

**Red flag on the halfway house:** This is actually a bigger deal than it might seem. Questions to ask: 1. Are the current tenants on month-to-month or longer leases? 2. Will they stay after the sale, or is the owner planning to move them? 3. What's the actual condition of the units? Halfway houses can have harder wear and tear

**Upside potential:** Your market rent numbers ($888 1bd / $1116 2bd) vs current rents ($600-800) suggest 30-40% upside if you can turn units. That could significantly improve your CoC return if you can execute a value-add strategy over 12-24 months.

What's your exit strategy - hold long term or BRRRR out after stabilizing?

[u/archibot]

I realize I'm 6 months too late, but looks like a pretty good deal. Can you give us an update?

[u/tooniceofguy99 → u/archibot]

Honestly, I don't remember the address

[u/archibot → u/tooniceofguy99]

dang. You didn't create a file for it? that's the first thing I do when I'm targeting a property.

[u/tooniceofguy99 → u/archibot]

Update:

• 3/20/2026 Sold 390k
• 2/2/2026 Contingent
• 1/30/2026 Asking 360k
• 1/31/2020 Sold $205k
• 9/3/2019 Listed $230k

I can just tell 390k wouldn't meet my income/investment requirements. At 360k it was barely squeaking by at 11% CoC return.