Updated over 6 years ago on . Most recent reply
Help me with this deal
Can anyone help me with this? Feel like I am underestimating the costs. There won't be property management cost as this will be my first property. Very much appreciate your help!
| x | x | Downside | Base Case | Upside |
| Property Price | x | 415000 | 415000 | 415000 |
| Type | x | MF | MF | MF |
| Number of units | x | 4 | 4 | 4 |
| Price Per Unit | x | $103,750.00 | $103,750.00 | $103,750.00 |
| 1% Rule | x | $4,150.00 | $4,150.00 | $4,150.00 |
| 1.5% Rule | x | $6,225.00 | $6,225.00 | $6,225.00 |
| Assumption | x | |||
| x | Down Payment % | 5% | 10% | 20% |
| x | Year | 30 | 30 | 30 |
| x | Rate | 6% | 5% | 5% |
| x | PMI | 1.00% | 1.00% | 0.00% |
| x | x | x | x | x |
| Income Per Month | Rental Income | $5,300.00 | $5,300.00 | $5,300.00 |
| x | Laundry | $150.00 | $150.00 | $150.00 |
| x | Storage | $0.00 | $0.00 | $0.00 |
| x | Misc | $0.00 | $0.00 | $0.00 |
| x | Total | $5,450.00 | $5,450.00 | $5,450.00 |
| x | x | x | x | x |
| Expenses Per Month | Tax | $604.25 | $604.25 | $604.25 |
| x | Insurance | $125.00 | $125.00 | $125.00 |
| x | Utilities | |||
| x | Electric | $41.67 | $41.67 | $41.67 |
| x | Water | $0.00 | $0.00 | $0.00 |
| x | Sewer | $0.00 | $0.00 | $0.00 |
| x | Garbage | $0.00 | $0.00 | $0.00 |
| x | Gas | $0.00 | $0.00 | $0.00 |
| x | HOA | $0.00 | $0.00 | $0.00 |
| x | Lawn/Snow | $31.25 | $31.25 | $31.25 |
| x | Vacancy | $265.00 | $265.00 | $265.00 |
| x | Repairs | $400.00 | $400.00 | $400.00 |
| x | CapEx | $400.00 | $400.00 | $400.00 |
| x | Property Management | |||
| x | Mortgage | $2,588.00 | $2,479.00 | $2,112.00 |
| x | PMI | $25.88 | $24.79 | $0.00 |
| x | Total | $4,481.05 | $4,370.96 | $3,979.17 |
| x | x | x | x | x |
| Cash Flow Per Month | Total | $968.95 | $1,079.04 | $1,470.83 |
| Per Unit | $242.24 | $269.76 | $367.71 | |
| x | x | x | x | x |
| Initial Investments | Down Payment | $20,750.00 | $41,500.00 | $83,000.00 |
| x | Closing Cost | $10,000.00 | $10,000.00 | $10,000.00 |
| x | Rehab Budget | $7,500.00 | $7,500.00 | $7,500.00 |
| x | Total | $38,250.00 | $59,000.00 | $100,500.00 |
Most Popular Reply
Property Management should be accounted for even if you are doing it yourself. Would you want to have to sell a property because you couldn't cashflow it and were suddenly incapable of doing it yourself?