Closed on a $1,446,000 fourplex with 3.5% down via FHA / 203k!
Location: Jersey City, NJ
Property Type: Fourplex gut renovation, financed with a 203k loan
Purchase price: $999,000
Renovation amount: $460,000
ARV: $1,500,000
Projected rental income: $10k/mo
Annual income: $120,000
Net Operating Income: $69,500 (5% vacancy / CapEx / R&M, 10% property management)
Unlevered Yield on Cost: 4.63%
Annual Cash Flow: (12,028)
I'll be in the red from a cash flow perspective early, but I am still super stoked about the deal. 20 minutes from Manhattan in Downtown Jersey City, a rapidly appreciating part of the city that feels similar to Brooklyn.
Really trying to take advantage of the FHA loan by levering up to a $1.45mm loan (which is within $30k of max loan amount). Debt paydown will be $33k+ in year one and any appreciation on a $1.5mm base is big $$$.
More detail can be found in my Twitter thread on the deal:
https://twitter.com/twbuilds/status/1332807426056335366?s=20