Potential quadplex investment

[Andrew Brooks]

Hey BP!

Been a member for about 4 mos now but i decided it was time to get serious this past weekend and have been analyzing properties ever since. I saw one that caught my eye and from the property analysis tool software, it seems that it would generate positive cash-flow. I've watched several of Brandon's seminars and went on the high end in regards to expenses such as vacancy and cap ex. I would probably use an FHA 203K loan as rehabs would be needed. Please let me know what you think as well as what might be missing. Thanks!

[David Ferrette]

Andrew, I have a few questions:

1. If your purchase price is $160k and your rehab is $60k, why is your ARV $200k?

2. If you are doing an FHA loan then you will need to live in one unit for at least a year. Do you still collect $3k in rent with you living there? If not, your cash flow will be less while you live there.

3.Are you sure you can get a 3.5% loan even if you are paying 2 points.  That seems a bit low in today's market.