Basic REI Analysis...

[Ryan Halverson]

I am looking to purchase a quad. I have been reading a lot over the past several weeks and put together some of the basics to get an initial analysis. This is by no means comprehensive or a final analysis before I purchase.

Type: Quad (2bd/2ba - 940sq.ft/unit)
Rent: 525-600 based on Craigslist and Rentometer
Rehab: ~2.5k/door
Financing: Debating between FHA 3.5%/FHA 203k/VA loan I don't have much money down but I have a hard money investor for the down payment if needed.

Here is a picture detailing my simple analysis...if there is anything else I should look at or I am missing please let me know. My next step is to create an itemized expenses breakdown instead of the 50-55% default
http://i.imgur.com/aidAJvu.jpg

[Ryan Halverson]

Thanks Frank Gallinelli I would be living in 1/4 of the building for the first 6month-1yr as we are just moving to the area, this would allow me to finance the unit the same as a SFH correct? I would continue to pay "rent" into the buildings bank account so it's finances weren't messed up. I included a "55% rule" which would take into account the higher vacancies for an area with numerous MFH.

My rehab would be to put nicer vinyl plank flooring in, beige paint w/white trim, and reface kitchen cabs w/new handles.

After learning more about owning a quad this becomes more fun, we currently pay 1270 of someone else mortgage (2bd/1ba/950sq.ft) and to learn my mortgage on a quad would be a fraction of that plus the added income...my fiance and I joke about living in all 4 apartments for 1/3 the price we pay now hah.