First Deal - 4 Plex?
Hey everyone,
I found a 4 plex and want your input on the deal. This will be my first investment property. I own a SFR that is three miles away so it would be easier to self-manage. For calculations, I included management expense but I plan to self manage.
4 plex, 8 units, 2 bed/1 bath, 3200 sq ft
Built in 1979. New flooring and cabinets in 2009
Purchase price: $194,000
Down payment: $40,000
30 year mortgage at 5% - 20% down
Income
Rental income: $25,920
Expenses
Property taxes: $1,000 annually
Insurance: $1,000 annually (guess)
Property management: (6% of rent) $1,560 annually
Maintenance/repairs: (6% or rent) $1,560 annually
Utilities: $2,100 annually (water/trash)
Mortgage: $12,348 annually
Total Expenses: $19,568
Net Income: $6,352
Cash flow: $530 monthly
Also should I use my heloc or cash for the down payment?
Thank you for all of your help in advance,
Justin