Analyzing my first deal

[Dante Barnes]

Hey everyone! My name is Dante Barnes and I am from Texarkana, TX. I am 22 years old, and just got married 3 months ago. I have been studying real estate through podcasts, books, and networking for the last 6 months and am dying to get my feet wet. A family member of mine received a large sum of money and is allocating to me $100k to start in real estate. I want to establish a portfolio of buy and hold properties and some possible BRRR's.

I currently run an Airbnb through rental arbitrage, and it has made $2k almost every month for the last 6 months(rent is $800/month). My target customer in my area is construction workers and hospital workers. I love the idea of short term rentals and would love to build my portfolio on medium and short term rentals.

My city is currently building a new hospital, which is set to bring in 6k new hospital workers. I’ve heard that this could be a great opportunity to hop into the medium term rental space. We also have a few colleges within a mile or so from the property so I could possibly rent by the room.

Anyways, for the last couple months I have been looking for a creative deal where I could buy a quad plex and house hack in it. I haven’t been able to find an actual quadplex, but I would like if y’all could analyze this deal I found and tell me what you think:

The property is listed as a “single family residential;” however, there are 3(potentially 4) units on the property. The owners thought they would live there forever so they built the other two houses as basically mother in law suites so that taxes would be lower.

The main house is a 5/3, 3100 sq/ft house with a large above ground pool with a deck around it.

The second house is a 2 story, 3/2, with a double garage(2200 sq/ft. The bottom portion has 1 bed 1 bath and a full size kitchen. The second story has 2 bedrooms 1 bath and a theatre room with a kitchenette/bar in the back of the theater room. They built the house in a way where someone could live in the bottom portion and then close off the inside stairway and split the bottom and top to turn the house into a duplex(there is outside stairs to lead up to the 2nd story).

The 3rd house is a 2/1 with a carport and 838 sq/ft.

All 3 of the houses are turnkey, they took great care of all the houses.

They are wanting 548k for the property. I have been told they are open to owner financing; however, I need help on how to set up the payment structure.

I was thinking 20-50k down, 30 year fixed, with a 3.5% interest rate. That would make my monthly payments $3400/month(with tax and insurance included).

I believe the main residence(5/3) to bring in on the low end $3k/month through short term rentals. I think the house will rent out $225/night; however, this number is based on it renting out at $150/night X 30 days = $4500 divided by 70% = $3150.

The top portion of duplex to bring in $1500/month on the low end. Me house hacking the bottom.

The 2/1 should bring in 1200/month long term and 1500-1800 month through medium term(furnish finder).

I believe this property to bring in $5,850 which makes it cashflow $2450/month.

I will put in 30-50k down payment—— 25k furnishings/updates(were good at staying on a budget)—— 25k in reserves which is about 7 months of cushion for vacancies.

Thank you for reading all that. Your opinions are greatly appreciated!