New Construction Fourplex Deal Analyzation

[Andrew Gomez]

Hey guys,
Had a big update on my fourplex that I previously posted and got my official numbers. I just want to see if anyone else would go after this deal or if im just being played by everyone else
I preface this by my main goal being to build equity as quickly as possible and have something that is generally low maintenance in comparison to an older property 
1) Brand New build  5000 Sq ft Quad - Each quad is a 3/2 with garage 2 story side by side unit 
2) Total Price $859,000  - (Subject appraisal only so far) 

3) Interest Rate Lock at 5% FHA (Bought down rate at $34,000) - - Total Closing at $79000
4) Monthly Payment $4,454 + $1817 (PMI / Insurance) Total - $6277

5) Surrounded by C Class  in Windcrest Texas 
6) total Projected income 3 Units - $1656 ea (Subtracted Property Management 8%) //  $1300 I am making with roommates in my own unit confirmed 
Totaling $6,268

7) Is there anything else I should account for here? Any input on the deal? Is there anything i should shy away from? 
26 years old - final kinda cold feet analysis 

Thanks for the input if any from investors!

[Adam Bartling]

@Andrew Gomez Your construction interest rate will not be 5%. Look to factor in 8.5% on new construction paid on draws.  When you get ready to close remember we can only charge 3pts total in fees.

When are you ready to build?

The Total price is with land or construction?

What % contingency is built in?  Or did they ask for extra reserves?

Everything is with in normal ranges I see.  If you want a 2nd opinion the Loan Estimate is what we need.

Curious to why you chose to pay down $34,000 in interest rather than paying more equity into the deal??    

[Andrew Gomez]

this is being sold as a new construction from the seller who is the builder, 

i didn’t think of that i haven’t ran those numbers yet thinking it would maybe save me some additional to put it into equity versus having a lower interest rate hmm I’ll have to run the numbers 

[Michael Smythe]

It's normal to include a 5-10% charge against rents for vacancy/maintenance.

Don't let anyone tell you there won't be any maintenance on new construction - builders aren't perfect and tenants break things.

[Reyes Tena-Martinez]

Don't expect cash flow from the deal. Are your roommates paying $1300? Also, account for vacancy rate.. roommates no longer want to live together, one unit is empty? That would be out of pocket.