Updated almost 11 years ago on . Most recent reply
First fourplex purchase ADVISE NEEDED!!
I am possibly about to buy my first fourplex. My fiance and I will be living in one of the units and renting out the other three. We only plan on living there for the required minimum of 1 year. I will include the rent that we will get for our unit when we move out to determin if this is a good deal. We have been going back and forth with the owner and got him down to $163K but I don't think he is going to budge any more. We will also be borrowing about $30K for some rehab with a 203K loan. Here are the details:
Purchase and repairs: $193K
Down Payment: $6755
Rents: $2500 (Could be raised after rehabbing to about $2800/mo)
Mortgage: $967
Taxes: $415
Insurance: $100?
Repairs: $250
Vavancies $250
Total monthy expenses $1982
$518/mo cashflow, $818 after rehab
Would you do this deal? I know there are better deals out there but since we have to live in it for a year, we would rather not be in a war zone.