[Calc Review] First investment - 4-plex

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We are looking into purchasing our first property and it's a fourplex. We will be living in one unit but are calculating it based on being fully rented. The loan is a VA loan so 0% down. Asking price is $285k but calculations are based on $240k. Utilities and rents are based on what current owner pays/receives. It seems we would just about break even at that price but I'm trying to figure out if my calculations are correct or if I'm over/under or missing something entirely. Thanks for help/input!

I'm just starting out myself, but it looks like you won't really be cashflowing much.  The plus side is you won't be paying to live there.  From what I understand, you should cashflow $100/door minimum so a 4-plex would be $400 month.  Taking into consideration that they are renting for $700.00 month, you are making the money if you account for what you would be "spending".    If you are accounting for the $700 month rent for all 4 apartments though, you are losing money because you are "showing income" for your apartment, and that is a bad deal imo.  Hopefully someone else will answer.

@Daniel J Aldrich thanks for the reply! I know we will be "losing" money at first since we won't be renting the fourth unit out as living there is a VA loan requirement but the mortgage will be paid by the other three units with some left over. We also aren't offering $240k I'm just using that as our "break even" so to speak. I'm not sure how close we'll get to $100 per door since we aren't putting a down payment either.

I don't know.   I still think your cash flow is still really low.  By not putting any money down your cash on cash return should be higher I think too.  Like I said hopefully the experts chime in

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