Updated over 2 years ago
This was my first attempted on analyzing a deal. I'm not sure if I did it right or if I missed something. My plan for the property is to get a FHA loan and house hack it.
Closing costs should be between 4-6%
Down payment should be 20% for most banks and hard money lenders
Interest rates for investment properties are typically higher than the average private residential. Use like 5%ish
The ad says 700/month but you have $1400 monthly income, should be $2100
Expenses seem good.
For this property, I was looking to house hack.
So I would get an FHA loan which I would only have to do a 3.5% down right?
since I would be living in one of the unit then I would get a primary resident interest rate correct?
that's why I only put down 4.15%
Have you used an FHA loan? I don't have the capital to do 20% for the down payment. I'm just getting started. I'm in the education phase at the moment. My plan is to get small multifamily with an FHA loan as my first deal.
What was your first deal like?
@Francisco Gonzalez if your numbers are good then that looks like a good deal to me. I would buy it! Your cash flow is -$17 so you are gonna be able to live on $17 a month for your mortgage?! That’s awesome man. Also for the renovated units are they $700 a month cause the tenants already were paying that or is that market rent for the renovated units? If they were paying that before Reno you may even be able to push up rent a little