Updated almost 8 years ago on . Most recent reply
Looking to purchase my first multifamily
Hey everyone,
To bring you up to speed, I'm 26 years old and relatively new to real estate investing. I've got two SFH's that have been going great and I'm pretty confident when it comes to single family numbers. I'm looking at purchasing a fourplex via an FHA (3.5% down) to live in for a year and then move out. The asking price is $200,000 and three of the units are currently rented for 600, 600, and 625. I can immediately raise rents to 650 across the board and still be the cheapest option in the area still while being one of the nicer complexes. I'm an accountant for a mortgage company so I get to play with numbers and see exactly what my total mortgage payment will be, which is $1715. I'm more focused on the numbers after the first year while I'm living there. Having all four units at $650 (2600 in total rents). I'm well aware of the 1% and the 2% rules (these numbers provide a 1.3% property), but just worry that there's something I may leave out and get burned on. The units are all metered independently so I don't have to subtract anything from rents other than typical vacancy, cap x, monthly expense averages..etc. Any feedback would be greatly appreciated.
Thanks