640 Vine St is a well-located fourplex right on the southwest intersection of Vine St and 5300 S in Murray. The property has significant value-add potential, as only one of the units has been renovated and the rents are well below market. That renovated unit has been left vacant so that someone can “house-hack” the property or live in the unit while renting the other three to help pay for the mortgage.
The property was built in 1970. The units are all desirable 2BD/1.5BA units with stackable washer and dryers. They are large 2-story units that are roughly 1,036 SF. There are 6 covered parking stalls and 4 storage units for the tenants. There is also a shed onsite that an owner can use for storage or rent to tenants for auxiliary income.
The average rent is $1,514/month. The average rent of similar units in the area is $1,795. There is therefore a value-add opportunity available by taking the rents to market. An investor can also charge for utility reimbursement, storage, and parking. If a new owner were to take the rents to $1,795, charge $75 for utilities, and expenses were $5,304/unit per year, the property would be a 5.74% cap rate at the asking price of $1,150,000.
