I need a second opinion on 4plex analysis please

3 Replies

Looking forward to hearing you thoughts.

I am considering putting in an offer on this 4 plex.  I want to see what everyone thinks about if this would be a good deal to get me started.  do my numbers look realistic. 

I got the rent off the MLS and checked it with rentometer and 1300 is below average.

I am guessing 10k or less for repairs.  I would personally live there without any cosmetic repairs.

I am accounting for abut one month rent each for vacancy, maintenance, and capex.

10% for management for future management needs

I plan to use fha and live there for the required period so these numbers are for after I move out and rent all units.

Link to my analysis is below.

I am wanting to start buy and hold and would love to be ready to buy another in a year or so.

any advice would be appreciated - Zach Kiser

https://www.biggerpockets.com/calculators/shared/8...

CAPEX and and Repairs at 3% each is very low. I usually aim for 15% or more for both combined depending on the property. Others will say, go for 10% minor repairs, 10% CAPEX.

Your analysis looks correct but I'm not sold on the deal itself. I'm a bit biased because those prices and rents are much higher than my area. I think there's more to consider in this besides just the raw numbers considering you're going to live there personally. Based on the numbers alone, I'd say it's not a great deal but would be marginal If it's in an area where you could expect some appreciation, market driven or forced, and get out of the PMI payment. I also think if it's your first deal, there is value in the experience you will gain in maintenance and land lording.

Is this an area you really want to live in? Is it more convenient to your daily activities? I feel that multi-family prices are at a peak right now, especially in my area, can you afford to or do you plan on holding it for a long time? Is this an area where you could do an Airbnb thing with one unit to increase income?

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