[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
Hi Everyone,
Here's what I got. This is a large 2 family in the New Britain CT area. Not the most desirable neighborhood but I moved up to New Britain 2 years ago and have a good pace on where to stay away from generally speaking. This home has approximately an additional 2bed 1000+ sqft available on the third level to finish and two current tenants in place on Level 1 and 2. There is also a 4 car garage in which 3 are currently rented out.
My plan is to finish the 3rd level which was partially completed at one point and then live as a 3rd level roommate to the second floor tenant due to this being a Low Money Down Loan.
I will most likely be doing a FHA 203k Streamline for the repairs. The tenants are both long term Section 8 tenants in place for more than 2 years and more than 3 years and do have a portion on top of what Section 8 covers that they pay monthly. I have checked with Section 8 and was told that as long as the repairs are done to code there will be no issue with me as the owner being the 3rd level roommate to the 2nd Level tenant as long as I pay for the 2nd levels utilities while I live there and also spoke with FHA representatives and they saw no issue as long as I would be residing in the property and only adding additional sqft to the 2nd level and not converting to a 3 family to start.
My plan is to remain for one year and then after moving out rent the 2nd and third level combined for additional rental income or complete the conversion at that point to a 3 family and rent out the third unit individually as well! I will be managing the property myself for the time being but I have budgeted for management as well. Please let me know if my estimates for vacancy, repairs, cap ex, etc. are to low I would rather be on the safe side!
The rents are as follows:
Floor 1: 1350
Floor 2: 1350
Laundry Use:
Floor 1: 50.00
Floor 2: 50.00
Garage Rents
Garage A: 125
Garage B: 125
Garage C: 125
Garage D: (Vacant)
(There is room in the basement for storage but no current charge or use of the basement from the tenants for storage)
Please comment with thoughts, questions, or any concerns you see that I may be encountering and if I finally have something worth pursuing or should I rock out in my current living situation for another month...lol
Thanks,
Israel
*This link comes directly from our calculators, based on information input by the member who posted.