Investor · Charlotte, NC · Member since 2016 · 2 posts · 0 votes
Dear Fellow BP Members - I am a part time investor (did 3 SFR deals so far) venturing into MFR for the first time and would appreciate any insights you can provide.
Information for the MFR (all units combined)
Property Price - $450,000
Age - 11 years old.
Tax - 1.5% annually
HOA - $900/month (HOA is responsible for everything exterior, so no roof expenses etc..)
Rental Income / month - $5000
Vacancy (assumption) - 1 month / year
Cap Ex / Maintenance (assumption) - $600/month
Macro market is definitely good in the Charlotte area - although, I wouldn't like to factor in any appreciation.
2 questions for the community :
When I did my math, the deal sounds 'okay' to me? What's your viewpoint?
Since this is a 5-plex, would I need a commercial loan?
I can only talk about the commercial loan: Yes, you'll need one. Anything >4 units will require that. The better part is that will make it more about the asset as opposed your personal credit.
As far as the deal, the HOA seems super high to me. Is there any upward potential for rents?
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
9y
@Harsha K. How are you paying for the property? What is your monthly PITI payment? 25% down? That is critical information in crunching the numbers and properly analyzing the deal.