Fourplex with below market rents with STRONG cash-flow for experienced investors!
About the Area
- Chattanooga, Tennessee, is an increasingly sought-after destination for both employment and real estate investment.
- The city is home to major employers like Volkswagen, Amazon, and UNUM, which have significantly contributed to its robust economy and low unemployment rates.
- Chattanooga’s strategic location within the “Chattanooga-Nashville Corridor” has established a strong economic relationship with the larger Nashville metropolitan area.
- This relationship further enhances the city’s appeal by providing access to a broad network of businesses, industries, and resources.
- The area has experienced remarkable growth, with ongoing developments and revitalization projects that have attracted new residents and businesses alike.
- Chattanooga’s focus on sustainability, quality of life, and scenic beauty continues to make it an attractive choice for those looking to invest in real estate and establish themselves in a dynamic, economically linked region between two of Tennessee’s most promising metros.
Investing in a fully rented 4-plex with all units currently occupied and rented below market value presents an enticing opportunity: (Current rents $4000/mo and Market rents $4600-$4800/mo)
1. Immediate Cash Flow: With all units leased, you’ll start generating rental income from day one, providing a steady stream of cash flow. Once refinanced to 6.0%, this property will cash flow at ~$900/mo! 2. Income Growth Potential: Since the units are rented below market rates, there’s ample room to increase rents over time, boosting your income. 3. Reduced Vacancy Risk: A fully occupied property minimizes the risk of income loss due to vacancies, ensuring a consistent return on your investment. 4. Equity Building: As you raise rents to market rates, the property’s value should appreciate, potentially creating equity that you can leverage for future investment. 5. One purchase – 4 “houses”: Experienced investors often find the option to purchase multiple doors/units in a single transaction, all under one mortgage, to be a highly efficient way to grow their real estate portfolios. This streamlined approach allows them to expand their investments more effectively and manage multiple properties with ease.Investing in a fully rented 4plex, especially when there’s room to increase rental income, can provide a strong foundation for building wealth through real estate investment.
Before you decide to purchase a four-plex, it’s essential to hear Dani Beit-Or’s insights on the advantages and challenges associated with such an investment. This will help you make an informed decision about whether a four-plex is the right opportunity for you: bit.ly/Buying-4-Plexes
About The Property
|Property Specifications||Per Door|
|Schools Rating (on scale of A-C)||B|
|Purchase Assumptions||My Offer||Per Door|
|Offer used for analysis||$590,000||$147,500|
|Suggested offer (low)||$580,000||$145,000|
|Suggested offer (high)||$590,000||$147,500|
|Market Value (after improvements)||$612,500|
|Other Fees At Closing (pts, . . . )||$4,130||7%|
|Original listing date||10/13/23|
|DOM (days on market – TODAY)||26|
|Down Payment (%)||30%|
|Down Payment Amount||$177,000|
|Mortgage Term (Years)||30|
|Monthly Mortgage Payment||$2,923|
|Cash Outlay (Total Out of Pocket)||$209,880|
|Property Tax Rate (Approx.)|
|Property Management Monthly (%)||8.0%|
|Property Management Monthly ($)||$376||$4,512|
|Owner Paid Water||$150||$1,800|
|Total Fixed Expenses||33%||$1,541||$18,491|
|Total Expenses (Fixed + Mortgage)||$4,464||$53,569|
|Financial Analysis / Deal Attractiveness|
|Net Cash Flow||$27,126||$89,927||$194,441||$347,703|
|Average Cash Flow/Year||$5,425||$8,993||$12,963||$17,385|
|Average Cash Flow/Month||$452||$749||$1,080||$1,449|
|Projected Property Value||$745,200||$906,650||$1,103,078||$1,342,063|
|Property Ratings Suggestions|
|Item||Suggested Criteria (Min.)||This Property||FAVORABLE /|
|Average Cash Flow (at year 5)||$125||$452||FAVORABLE|
|Average ROI (at year 5)||15%||17.3%||FAVORABLE|
Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice.
The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.