Hello, I'm new to the community and trying to learn to ropes. I'm working on analyzing numbers and came across this multifamily building. I'd very much appreciate some feedback on what I've found. Can anyone please point out what I'm missing in my calculations or if I'm on the right track?
If I take a 30 yr loan for $1,679,000 with 4% interest, my mortgage would be approximately $4,850/month.
Total current income from the 4 units is $8,795.
Monthly estimated expenses is $3,060.
Mortgage $4,850 + Expenses $3,060 = $7,910
Income $8,795 - Mortgage/Expenses $7,910 = $885
So this would be putting about $885 in my pocket each month.
Assuming the expenses are correct, no vacancy, no capital expenditures, no surprises then yes 885/ mo. In addition you will get consideration back at tax time due to operating expenses and depreciation. Good for you to have found something to consider!
Can you breakdown your expenses and we can tell you if it looks correct
Also getting an investment loan at 4% is outstanding - you sure that is the rate your being charged
Assuming all your expenses are accounted for, you will have, according to your numbers a yearly return of 885x12=10,620$ on investment of around 320,000$ ( 20% down).
That is around 3% cash on cash. BAD investment!!
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