New Jersey Deal Analysis
Hi Everyone,
I have been on the search for a great multi-family house in Northern New Jersey. I found a deal which (I think) is good if not great. This is my first time writing and analyzing a deal fully so please let me know if I am missing anything or there is anything I can change.
I am looking to get an FHA/203K loan and put 3.5% down on a multi-family home. So I will live in one unit and rent out the 2nd (3rd and 4th depending on how many units the multi family home has) unit.
First off, lets say I have been approved for a 203K loan for $320,000. The original home price is $300,000. This particular unit is a 4 unit multi family home, so I would live in one of the units and rent out the other 3. Each unit has 2 bd 1 ba. The average monthly rent in the area for a 1bd 1 ba is $1100/month. The monthly mortgage (including property taxes, fees, MIP, etc.) is $2,500/month.
So, 3.5% down of the $320,000 loan --> $11,200 as a down payment.
Unit 1 - Owner Occupied (I would be living in it for 2 years) - $0
Unit 2 - Rent - $1100
Unit 3 - Rent - $1100
Unit 4 - Rent - $1100
This leaves me with $3,300/month, while the mortgage is $2,500/month giving me positive cash flow for $800/month.
This is what I have come up with...anything big I am missing? anything I may have done wrong? any comments/advice?!
Thank you all for reading!
Best,
Geet Doshi