Hi Everyone,Need to pick your collective brains on a residential multifamily deal I'm looking at.The cash flow is very low, but the market is pretty competitive so I'm just undecided betweenjumping the gun and actually owning my first multifamily vs waiting for a favorable market/next deal.I'm going to purchase using FHA loanHere are the numbers:Purchase Price : $290000Annual Taxes : $3286Annual Insurance : (estimate) $1800Down payment : 3.5% ($10150)Interest Rate : 3.625%PMI : 0.85%Closing Costs : $6800Upfront repairs : (estimate) $10000Monthly rent : $2800I'm usually very conservative, so use 8%, 5%, 5% and 10% for Vacancy, Repairs, Capex and Property Management respectively.My calculations gave a meager cash flow of $114 a month.

You aren't doing the buyer any favors by not filing.

I've looked at condotels here in Honolulu and have properties that can do 30 day vacation rentals but the mgt. fees etc. is not very favorable. 

The problem with it is that this transfers 10 loans of very favorable terms to into one bundle loan of not so favorable terms, usually 15 or 20 year amortization with balloons attached etc. also, this seems to set up a house of cards if you ever ran into trouble.

I spoke with a lawyer and he confirmed this to be true.The problems are:1) No variance yet2) I am uncertain what loan options I have (based on conversations with banks/loan officers)3) The home needs a COMPLETE remodel (gut, electrical, plumbing, sheetrock, new windows, and more including probably a new roof)The last thing I want to do is abandon the 2 family option in favor of a single family option.

Once the oil went out of favor, we lost a number of tenants. 

The amounts are entirely justified, but I would just like to discuss to put my best foot forward and ensure a favorable outcome.

I'm always open to new leads and will reciprocate the favor whenever possible. 

This process would work similarly to having full-time handymen, as my company would also employ full-time cleaning staff, which would allow my company to provide cleaning services to property owners at below market cost.)Now after reading all of that I have to ask a favor of you, the BiggerPockets members.

Its a little low but only because I called in a few favors.