Is this a good deal??

Question

I'm very new to this and looking to buy my first proprty early next year. I know i still need to do a ton of research and learning and networking.

Im interested in a multi family here are the details:

asking price is 237,000k

sq ft: around 4,000

taxes around 4500

Rents potentially 2500-2600

va loan.

I would appreciate any and all advice!

Enrique Gonzalez · Answer

@Nathan G.

That's all correct. I didn't think at first that living rent free in 1 of the units is a positive as far as cash flow.

-thanks for the replies gentleman!

Nathan Gesner · Answer

@Enrique Gonzalez I assume you are occupying one of the units so the income is based on three rentals? Those numbers look pretty good to me.

Enrique Gonzalez · Answer

Peter,

There are 4 units

Peter Pratti · Answer

Seems decent! How many units?

Enrique Gonzalez · Answer

The left numbers are monthly and the right annual.

Enrique Gonzalez · Answer

Kevin,

Thanks for the reply! Here is a guess-timate on what the expenses might be but i just dont think im adding things up correctly.

Income:

$2,650.00

$31,800.00

Mortgage Pay:

$1,200.84

$14,410.13

Vacancy (5%):

$132.50

$1,590.00

Property Tax:

$400.00

$4,800.00

Total Insurance:

$79.17

$950.00

Maintenance Cost:

$66.67

$800.00

Other Cost:

$41.67

$500.00

Cash Flow:

$729.16

$8,749.87

Kevin Christensen · Answer

Enrique,

I'm new to this as well, but assuming there is no major defects I can't see how that couldn't be a good deal.  The mortgage on that house at full price would be around $1400.  So unless there were major things you're forgetting, like property management, insurance, etc. that would add up to a lot, or its in a really bad area and it would be hard to rent it, I don't see how it wouldn't cash flow.  Hopefully someone with more experience than me will step in for you. Good luck in your journey!