MFH analysis - what do you think?
Evening everyone,
I've been searching recently for a MFH property with at least 4 units. I found one while browsing the net. I contacted the realtor and he provided me with some details and a financial breakdown. Property has been fully occupied with long term tenants. Said the roof was replaced four (4) years ago and the interior of the units are in okay condition. I did my own analysis based on my own numbers to see if this would fit my criteria. I plan on using a FHA loan to purchase my first rental property and I'll occupy one of the units myself.
1) Gross income (yearly) - $49,380
2) Vacancy rate of 6% - $2,963
3) Income - Vacancy = $46,417
4) Expenses (yearly) = $18,234.24
Taxes = $6,962
Insurance = $1,600
Water = $1,350
Sewer = $2,672
Maintenance = $2,071
Gas = $1,500
Electric = $500
Replacement Reserve = $1,200
Advertising Fee (1%) = $414.54
5) Net Operating Income = $28,183
6) Debt Service = $19,761
Assuming 3.5% down-payment, on $295,000 home value, 5% interest on a 30-year loan
7) CFBT = $8,421.28
I don't know if I did the the analysis correctly on this but any feedback would be helpful. So what do you guys think about the deal?