Help me pull the trigger!!!! Please HELP!!

[Katrina P.]

Hi Everyone,

I don't know why I always get nervous when it's time to pull the trigger...several years and purchases into this thing. Anyways, please take a look at the numbers for my newest deals I plan to close within the next 6 weeks (I'm new to multifamily, so that may also be why I'm nervous). Let me know if I'm missing something, if they're great deals, or If I need to start over! lol Still building my confidence!

8-unit

Purchase price: $135k

Rents (currently 100% rented): $3830/mo

Tenants pay their own electric

Gas: $210/mo

Water/sewer: $250/mo

Taxes: $325/mo

Insurance: $278/mo (still shopping around for insurance, but this amount includes general liability for $2m at $706/year)

Garbage: $80/mo

Lawn care/snow removal: $235/mo

Total expenses: $1250

Financing:

Bank Loan: $128k, 5.75% interest, 15-year amortization, 5 year balloon, $1065/mo pymt

Down payment: $10k

So, $3830 - $383 (10% maintenance) - $1250 (monthly expenses) - $1065 (mortgage) = $1132/mo cashflow.

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(2) 3-units

Package Purchase price: $75k

Rents: $2800/mo (5/6 units are currently rented. There is an office space that is empty that I will rent for $400).

Electric: $213/mo

Gas: $255/mo

Water/sewer/trash: $169/mo

Taxes: $201/mo

Insurance: $100/mo

Lawn care/snow removal: $100/mo

Total expenses: $1038

Financing:

Bank Loan: $56,250, 5.75% interest, 15-year amortization, 5 year balloon, $467/mo pymt

Seller Note: $15k (20%), 5% interest, 10-year amortization, $159/mo

Down payment: $3,750

So, $2800 - $280 (10% maintenance) - $1038 (monthly expenses) - $626 (mortgage) = $856/mo cashflow as currently rented. Once I rent the office space, this should increase revenue by $400, so to be conservative, cashflow should increase by $200 once I rent the space.

Have I missed anything at all with these evaluations? Thoughts/input/suggestions??? All are welcome!!

Thanks so much!