Just went under contract for my first 4plex. How'd I do?
This is my first real estate investment. I'm excited to get going, but want to make sure this isn't a bad idea before I close.
Purchase Price - $220,000 and $5k back for closing
4 occupied units - $635x4 = 2540
Financing - 3.5% down at 3.5-3.75% interest
Mortgage payment, PMI, Insurance (homeowners and earthquake), and taxes - $1526 a month.
$2540 with 8% vacancy $2336.8 expected rent
$2336.8-$1526 = $810.6 Current Cashflow
I'm probably going to build a garage for $20k so I can live in one of the units, and rent the other space for $50 a month.
The home is in Tower grove east, but barely. It's one of the first houses on Magnolia next to Tower Grove Park. I'm curious how you guys would rate the neighborhood.
Thoughts? Thanks in advance!