Buy 5 Plex---Analysis

Turnkey 5-Unit Investment Opportunity in Booming Fresno Rental Market!

💰 Cash Flow from Day One!

This is your chance to own a fully remodeled fiveplex in the heart of Fresno, where the rental income is likely to cover your mortgage and expenses immediately. A rare find in today's market!

🏡 Property Overview:

Five spacious units each 3 Bed / 1 Bath

Current Rents:

Unit 101 - $1,800

Unit 102 - $1,900

Unit 103 - $1,900

Unit 201 - $1,849

Unit 202 - $1,800

Total Gross Income: ~$110,988/year

Tenant Mix: 3 units on Section 8, 2 on market-rate leases

Analysis--This analysis is very rough ---You must verify this with commercial lender---Dont depend on this analysis

🔢 1. Income Summary

Monthly Gross Income:

$1,800+$1,900+$1,900+$1,849+$1,800=$9,249\$1,800 + \$1,900 + \$1,900 + \$1,849 + \$1,800 = \$9,249$1,800+$1,900+$1,900+$1,849+$1,800=$9,249

Annual Gross Income:

$9,249×12=$110,988\$9,249 \times 12 = \$110,988$9,249×12=$110,988

🧾 2. Operating Expenses

Expense

Monthly

Annual

Water

$250

$3,000

Trash

$250

$3,000

Property Tax (1.25%)

—

$11,875

Insurance

—

$3,000

Cleaning / Landscaping

$100

$1,200

Misc Repairs / Maintenance

$200

$2,400

Total

—

$24,475

💼 3. Net Operating Income (NOI)

NOI=Gross Income−Operating Expenses\text{NOI} = \text{Gross Income} - \text{Operating Expenses}NOI=Gross Income−Operating Expenses NOI=110,988−24,475=$86,513NOI = 110,988 - 24,475 = \boxed{\$86,513}NOI=110,988−24,475=$86,513​

📉 4. Cap Rate

Cap Rate=NOIPurchasePrice=86,513950,000≈9.11%\text{Cap Rate} = \frac{NOI}{Purchase Price} = \frac{86,513}{950,000} \approx \boxed{9.11\%}Cap Rate=PurchasePriceNOI​=950,00086,513​≈9.11%​

💳 5. Loan Details

• Purchase Price: $950,000
  
  

• Down Payment: $250,000
  
  

• Loan Amount: $700,000
  
  

• Interest Rate: 6.25%
  
  

• Loan Term: 30 years
  
  

Monthly Mortgage (P&I):

Using amortization formula or calculator:\text{Using amortization formula or calculator:}Using amortization formula or calculator: \text{P&I} = \$4,310/month (approx.)

Annual Debt Service (P&I):

4,310×12=$51,7204,310 \times 12 = \$51,7204,310×12=$51,720

💸 6. Cash Flow (Before Taxes)

Cash Flow=NOI−Debt Service\text{Cash Flow} = \text{NOI} - \text{Debt Service}Cash Flow=NOI−Debt Service CashFlow=86,513−51,720=$34,793/yearCash Flow = 86,513 - 51,720 = \boxed{\$34,793/year}CashFlow=86,513−51,720=$34,793/year​

Monthly Cash Flow:

34,79312≈$2,899/month\frac{34,793}{12} \approx \$2,899/month1234,793​≈$2,899/month

📈 7. Cash-on-Cash Return

Cash-on-Cash Return=Annual Cash FlowCash Invested\text{Cash-on-Cash Return} = \frac{\text{Annual Cash Flow}}{\text{Cash Invested}}Cash-on-Cash Return=Cash InvestedAnnual Cash Flow​ Cash Invested=$250,000(downpayment)\text{Cash Invested} = \$250,000 (down payment)Cash Invested=$250,000(downpayment) 34,793250,000≈13.92%\frac{34,793}{250,000} \approx \boxed{13.92\%}250,00034,793​≈13.92%​

✅ Summary

Metric

Value

NOI

$86,513/year

Cap Rate

9.11%

Monthly Cash Flow

~$2,899

Annual Cash Flow

~$34,793

Cash-on-Cash Return

13.92%

Loan Payment (P&I)

~$4,310/month

Analysis--This analysis is very rough ---You must verify this with commercial lender---Dont depend on this analysis