Purchasing a 4 Plex can be an amazing investment

Real Esetate has amazing abilities for investors.  Especially if the investor can get the property at the right price.  I just had the privilege of opening escrow to an investor who bought a 4 plex for $127,000.  I have worked the numbers below so anyone can see that there are some amazing investment opportunities in the market January 2012.

Remember when purchasing an investment property, its all about the return on investment, not necessarily market appraciation even though this will eventually happen.

Down Payment Required for a 4 plex is 25%.  Below is an example of a 4 plex I just financed.  The return on investment was a little over 39%.  This is without market appreciation.  And the tenants are paying down the mortgage so the investment will get better over time.

Purchase Price = $127,500

• Down Payment = $31,875
• Closing Costs = $6,000 (This included prepaid Taxes & Insurance)
• Repairs = $5,000 (One unit needs carpet & some other cosmetcs)
• Total Investment = $42,875

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