Hello BP. I have run several reports on different properties now and I can't seem to find a single one that makes sense. I'm new to this so I'm not sure if the numbers I am using are accurate. I'm hoping you guys and gals can give me some input on the information in this report and let me know if I'm over or under estimating certain points and how I should adjust my numbers.
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Howdy @Jared Baker
1. What type property is this? How many units? What is the rent rate for each unit?
2. Is the $3,600 all units fully occupied? Or all but one (you are living in it)? What is the additional $100 income?
3. Expenses. Vacancy and PM are good. CapEx is adequate. I would raise Repairs to 5%. Insurance is a killer. It seems extremely high. Did you get a quote for this amount?
4. It is not unusual to have negative cash flow for a House Hack since you are not collecting rent for one unit while you live there. However, it needs to be able to achieve Positive Cash Flow once you move out. Otherwise what’s the point.
You need to analyze it two ways. Once with you living there and one after you move out.
@John Leavelle This is a four plex property. Based on the demand in the area and existing rents, I used $900 a door. $3600 is fully occupied. I would live in one unit so the income would be less. the $100 is from on site laundry machines (I'm assuming this number, I really have no idea) I have not gotten quote for insurance on this type of building, I just used google. I found it was between 45-65 a month per door. So this deal was analyzed as a full rental.
@Jared Baker That is what I suspected. This does not even come close to being a good deal. The rental income is too low for the purchase price. you need to get an actual quote for the insurance (it doesn't cost anything). There are three expenses that are killers for this deal. Insurance, PMI, and HOA. I wouldn't waste any more time on this one if I were you. Numbers don't lie. Don't fudge em to make it look better. Good luck.