All Forum Posts by: Maurice Cormier

Thank You Guys. Got a some education from this.

@Sarah Lam

Thanks for the response and the confirmation that what I've been hearing for the last couple of years is true. Which is really why I'm so focused on getting multi-units in the future. I'm mainly looking in the upper peralta (coolidge, macarthur), lake merritt, and the oakland/berkeley city limits (telegraph). Familiar with these areas?

Thank You Jerry For Your Wisdom Jerry. I can see it's very risky but what's crazy is the fact that normally this is how it's done in california, based off what I hear from other property owners. One person told me he covered the rent in the unit he lived in as a owner occupier until he could refi out his loan and take money out to buy another property...risky! But they all do that or try to do that.

Thanks Jerry,

No offense taken. The truth is what I'm here for. lol

Here's the info i got off mls plus my max purchase price and approximate mortgage payment:

4plex/Max Purchase price 588k

NACA loan/no money down. Just probably 5000 earnest money deposit

Approximate Mortgage Payment w/T&I- 3650

Interest Rate/ 4.125 fixed

Gross Rents/53400 + 1440 from laundry (annual)

Utilites/6840 (annual) paid by owner. Water and sewage only

Vacacy Expense/ 1570

Property Taxes/7044

Insurance/1040

Miscellaneous Expenses/1560

Sewer Lateral Completed/ Roof is in good shape...they say.

I make 68k a year and rent for 1100 mouth at but have hardly any bills.

Let me know if that isn't enough info. I'm new at this.

@Catherine

That's the kind of stuff I need to look at. Will start taking the roi into consideration immediately. I have alot to learn. Thank You.

Looking to buy in Northern California (san francisco, oakland area). Urban area with lot's of long term tenants. The property I described to joel is in that type of area.

Whoa! Thanks for the quick responses guys (and gal).

@joel

One 4 plex property I'm looking at where I live in northern california (oakland, san francisco area) is almost $300 a month in cash flow because I already have a good idea from my mortgage counselor what my payment with t&i will be and i got the expenses off the mls. I'm also gonna have to live in one unit so that will obviously put me in the negative until i can refi and move out to the next investment property (i hope. smh).

Asking price is 580k and my realtor says i will probably have to go up to 586k to get it. I'm sure i can raise rent a little over the next few years because it's a decent area and people stay forever (family in area so I know). Leaning strongly toward not even putting in an offer but the program I'm in (NACA) is no money down, no closing cost, and they will pay for major repairs. They make you made me save 8k to qualify for up to a 4plex so i won't come in broke even after an earnest money depsosit.

This has me wondering if this would be an okay move.

Your Thoughts Investors?

Hello Everyone,

My first post here on the forum and I'm very excited. I would like to know what is considered acceptable cash flow on a 4plex? Is there a certain amount of monthly flow that is considered bare minimum?

I ask this because I'm starting to look at properties and submit info to my real estate counselor and don't wanna waste time. I will give property info once I start finding properties that meet my criteria of fully rented out or one unit available. The home purchase program (NACA) that I'm in requires owner occupancy.