All Forum Posts by: Dave Shrock

Hello I finally have a 4 plex under contract, So I am wondering what % interest rate are you all paying for a 30 year mortgage with 20% down? I have excellent credit 800 or better. Also wondering about closing costs, What can I expect? what is normal and what is to high?  I was quoted 4.5% with closing costs as high as $4,000. I welcome your feed back. Thank you. 

Hello, I am new here, I need some eyes to see if my analysis is correct and if you all think this is a good deal?

I am looking at a 4 plex deal that is fully rented. Here are the numbers: all in Purchase price $95,500  Gross income is $21,660 this is facturing in a 5% vacancy

Expenses: Property taxes $2,260, Insurance $450, Property management $2,200, Repairs and maintenance 5% $1,140, Utilities $2,025, Lawn & grounds keeping $600, Capital expenditures & miscellaneous, 5% $1,140. Total yearly expenses $9,815. I plan to finance it with 25% down $23,875  With a monthly payment @ 5% interest will be $385 a month $4,620 a year. So that brings total operating cost with debt service to    $13,303 a year.  $21,660 - $14,435 = $7,225

So my yearly cash flow is $7,225. With  $23,875 down payment  that gives me a %30 ROI.

 What am I missing? Does this look good for a long term hold? My goal is to create cash flow. 
All feedback is welcome, looking for some confirmation before I move ahead with this deal.
Thank you.