Multi-Family Deal Analysis Help

[John Armando]

Hello All,

I've been looking to identify a multi-family unit in the SouthCoast of Massachusetts and found a few options that I think could cashflow. I wanted some guidance from more experienced investors to see if I may be forgetting something with this current potential deal.

Units: 3 x 3 bed 

Price: $255,000

DownPayment: 5% 

Renovations: $2500 

Interest: 3.5% + 0.8% PMI - estimated I have very good credit so from previous pre-approvals can expect this rate

Points: 1.5% - estimated

Rents: 3 units - $950, $900, $850 - estimated based on area

Taxes: $3174

Utilities: estimated at $225 per month - likely on the high end here

Insurance: $2000 per year - estimated

Maintenance: $50 per month - estimated

Vacancy: 7.5%

Long term maintenance: 10% for large capital expense - roof, water heater, etc.

Property Management: 10% - I don't intend to use property management but for future potential I'd like to budget it in

With this I expect to cashflow $1966 before taxes, $1415 after taxes, for a 10% CoC and 7% ROE.