Nervous about 8 units for first deal. Does it make sense?
In a failed attempt to buy a smaller 4-unit multi-family property, I stumbled across an 8 unit deal in Pensacola. This was going to be my first deal, so I'm not really familiar with the larger multi-family dynamics and wanted to see if this deal made sense. Each unit is 2bd 2bath going for $600. Here's what my monthly estimates look like:
Insurance (includes flood) - $450
Maintenance and capex - $530
Mgmt - $480
Vacancy - $480
Water and lawn - $415
Taxes - $350
Mortgage - $1730
Total expenses - $4435
Income - $4800
Cash flow = $365
Does this make sense? I know CapeRate is supposed to be in there too, but haven't figured that out yet.