Updated about 6 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
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@Kristi Olson if you need to ask questions or thank someone you have to learn to tag people. Use the @ sign and start typing their name. It will appear and double click on it. It will populate the comment box with their name in blue. They will be notified that something happened in the post.
The $100 will be per unit not total. Cash flow is great but not if you can get the same return in a cd and have no tenant headaches. Cash flow from rentals comes in fits and spurts, not like a money market account. What if your renter decides not to pay or the hot water heater craps out. You have to have reserves for that.
I look for at least 10% ROI. In my market, to cash flow I look at the 1% rule, which is monthly rent divided by .01= max purchase price. So in your 4 plex you could pay no more than $358000 for the property. Is that possible I don't know your market. Maybe your risk tolerance is greater than mine and you are playing the appreciation game.
I don't know what your situation is but if I was going to start over I would house hack a small multi 2-4 units. Can get in with less than 5% down. You can do that up to 10 times or when you dti is maximized. Move every year.