Hey Bigger Pockets community!
Excited to say that my girlfriend and I are finally taking a step into the real estate world! We've been doing a lot of research over the past few years and are currently looking at multifamilies in our area. We have found one that we are considering making an offer on but still have a few concerns before we pull the trigger. We used our best judgement in analyzing the property and come up with a barely negative cash flow ( around -$150) but feel like there's still a few pieces missing in terms of getting a positive cash flow. Part of the issue is that we've guestimated on some of the metrics used in analyzing the property ( PMI,taxes,mortgage insurance, etc.). Any suggestions on what we can do to improve our analysis ?
Google your town GIS, they should be able to tell you what the yearly taxes are.
For PMI I would google any bank and they should have some sort of mortgage calculator that will tell you what your P&I and PMI should be.
Home Insurance is a tricky one that I don't have an answer for. I usually just use $1000/year as a place holder
I'd also try and factor in Maintenance as a monthly expense. I usually use 15% of rent per month.
I have an excel spread sheet that I could send to you if you'd like. Not sure how much help it'd be.
@Knoell Palmer Biggerpockets has various calculators in the tools section that lets you calculate pretty much anything! Take advantage of them!
Here's the PMI calculator I use:
I admittedly prefer the bank I work for for financing, but the PMI shouldn't vary from above regardless.
Thank you guys for your help! I was able to apply a little bit of what each of you guys recommended to get a more concrete analysis.