Is this a Good Multi Family Investment Property?

Question

https://www.biggerpockets.com/calculators/shared/3...

Id like to know if the BP community can help me identify if this is a good investment or not Or point out some discrepancies in my analysis.

My goal is cash flow, but will settle for tenants covering the payments.

Russell Brazil · Answer

Your interest rate is too low.

Also I cant believe you can get a two family that close to the city for that price.  Let this be a lesson for every one on BP who says they live in too high cost of an area to invest.  If you can buy a 2 unit in the NYC metro area for $150k,  then no where is too expensive to invest.

James Leake · Answer

Hi Kevin,

I'm from New Jersey as well and I have been a broker here for 10 years. I sold property in that neighborhood and just looking at your analysis it seems pretty solid and on point! The only discrepancy on the analysis is that you have "after repair value" of $160k because that's a two family and in that neighborhood it should be about $225k. Good luck!

James Leake

Kevin Izquierdo · Answer

@Max Dworin @James Miller @Russell Brazil  that was actually one of the things that I wasn't too sure of and wanted to know if I did correctly or not. I'm new to REI and deal analysis so some number were guesses. I went pretty high in repair costs and property management, I think. I'm a carpenter so I can do (and want to do) the interior repairs like the bathroom and kitchens renovations so I'd be paying for material costs only. I also guessed on the Insurance and Management costs.

@Brent Coombs I dont quite understand myself either, so I just left it there. but this is exactly what I wanted, question for me so I can research the answer.

@James Leake Awesome! I left it at 160k because I wasnt sure what the ARV would be. I dont know how to calculate that, but at least I have some homework now! thank you

Brent Coombs · Answer

@Kevin Izquierdo, did I miss something? The first page calculates your expenses as being approximately 90% of the income per month ($2338 / $2600), but then you suggest on the second page that the 50% rule would apply instead. Hopefully you can help me understand. Thanks...

James Miller · Answer

It says interest rate of 2%.  Not sure if thats a typo.  If not I would like to know how you got that.

Max Dworin · Answer

interest rate is way too low. @Kevin Izquierdo may I ask how you found this property?

Nnabuenyi Anigbogu · Answer

From what i can see it looks like a solid deal. I was shocked when i saw your tax numbers and then realized it was in new Jersey. I assume this is a 2 flat so over $120 a unit in cashflow which is not bad depending on the area.

Is this a Good Multi Family Investment Property?

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