[Calc Review] Help me analyze this deal

2 Replies

@Jose Lopez:

  • Repairs and CapEx are way too low. 15% combined is pretty safe.
  • You're forgetting management (10%).
  • Water/sewer is usually paid by the owner of a 4plex.
  • Any other house utilities, like electric for common areas?
  • Lawn care?
  • What's with the $7k of loan fees in the refi?

I think your cash flow will be closer to $525/month. CoC ROI of 15%. Still worth considering for sure. If you can get it for less or push up rents a bit more, could be a real solid deal.

Jaysen, 

Thanks so much for your input. I appreciate it more than you know.  

I'm going to self manage these, and mow the grass myself for the first few years at least.  I guess it would be a good idea to add the 10% management to the calculator to account for that as a future expense.  All 4 units have their own water meter.  So they tenant will be responsible for their own water/sewer/trash which is paid directly to our city public works department.  

The reason CapEx was so low is because I plan on replacing the roof during my rehab, and the AC units are all less than 10 years old. But I will take your advice and increase my capex to 15%.

I added the $7K to the refi as some cushion because I've never completed a refi and wasn't exactly sure how much I should expect to pay in fees.  I'm certainly open to feed back on that number though.  

Thank you again for taking time to reply to my post, and I'm excited to hear anything else you have to say. 


Thank you,

Jose

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