Philadelphia Multifamily Rental - Help me analyze this deal

5 Replies

It would helpful if you could provide more information. Whats the location of the property? How many units? What are the setups of each unit? Ect.

At a quick look, are you going to be living in this property? You are putting roughly 13% down and getting a 3.250% interest rate?

As for expenses dont forget each unit needs a rental license. Also note there are garbage fees for multifamily properties.

Cash flow seems very low for the cost. You're only putting down 3% on a almost half a million dollars and are banking on on your expenses not going up over the year eating up that small amount of cash flow. Unless the units are going to be remodeled and rent upped or if the units are brand new I'd look for a better deal. No money to be made here and you're just asking for a negative cash flow eating up your savings.

Does the cash flow in your report assume you occupying one unit? If so, what do you pay for whatever/wherever you're living now?

I'd plan on having more cash flow to cover expenses at a minimum. The way you're looking right now the only upside to the property would be a long term equity play.