# [Calc Review] Help me analyze this Triplex deal

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*This link comes directly from our calculators, based on information input by the member who posted.

@Dustin Cady First reaction? You're creating numbers to make this cash flowing. Where are you getting your utility numbers from? PMI is going to be much higher. PMI is based on amount of loan, not amount of rents. All of your reserve percentages are too low. Much too low. Property tax is only \$1,296 per year? I'm assuming you'll live there and self manage so I'm ignoring your 6% estimate. Rents to purchase price is 0.71%. I have no idea how you can make money at that rate. Now, which unit are you going to live in? If it's one of the smaller ones then you'll need to do the calculation on how much rent you pay now and how much out of pocket you'll pay if you buy this.

Looks like your setting this up like house hack with a FHA loan. That means you need to owner occupy. Does this analysis include rent for your unit? Make sure you run the numbers both ways so you know if it will work as a pure investment.

• Repairs and CapEx are too low. I figure 15% combined.
• Water/sewer will probably be 3X+ what you have. Call the town and get the bills for the last year.
• Management will be 10-12%
• Taxes look very low, but I don't know your area. Confirm with the town.
• PMI will be closer to \$275/month, assuming this is FHA.

@Anthony Wick You are probably right about the numbers. I am going to use a 3.5% FHA loan to get into the property. I am currently renting at \$1600/month. I put the reserves for repairs and capex lower because I plan to fix a lot once I move in, but I should make sure it is still accounted for. I do plan on living there and self managing for the first year, after that I want it to make sense as a rental. I am going to re-run the numbers and make sure I am being honest about the costs.

As far as property tax goes. That is the real tax rate for the year. In my area our property taxes are very low.

Thank you for the input!!!

@Jaysen Medhurst

- My plan is to FHA house hack. This analysis is including rent for my unit. So I am assuming what it will look like after I move out. Right now, if I move in and take MTI/PMI (\$2,200) - Income from the two units (1,500). I will be out of pocket around \$700. This doesn't account for any repair/capEx, vacancy etc though. Right now we are paying \$1,600 in rent so dropping that sounds great, but not at the expense of being in a bad deal.

• Taxes are low here, that is the true number.
• I am going to up the repair and CapEx number to make sure I am fully covered.
• Damn PMI.....

Thanks for the input.

425k to make 200 Bucks month . Geez That’s rather pathetic . I could sell worms out of my yard to fisherman and make more .

@Dennis M. Haha.  Fair point.