First 3-family deal. Thoughts?

[Zulu Black]

Hi all,

Just got an offer accepted on a 3-family property. I’ll be teaming up with two partners (three of us total) and wanted to run the numbers by the community to see if this makes sense. I'm planning to self-manage for now, but wanted to factor in a management fee for conservative underwriting.

Key Numbers:

• Purchase Price: $650,000

• Layout: 10 beds total (4-4-2 across 3 floors)

• Projected Rent: $84,600/year (fully leased)

• Expenses: ~$25,460/year (tenants pay gas/electric)

• Net Operating Income: ~$59,140

• Cap Rate: ~9.1%

Financing Plan:

• Loan: $487,500 (25% down)

• Interest Rate: 7% (DSCR loan)

• Estimated Debt Service: ~$38K/year

• Projected Cash Flow: ~$29K/year