Need some math help.

[Austin Hoover]

I have 26k to play with on a cash out refinance. I am in the process of buying a duplex but I have some concerns. 75k is the current offer they gave me. I don't want to pay closing costs. The owners are paying for heat and water. Utilities are around 150 a month. Taxes 104 a month insurance is 77 a month. PM Fee is 8%. The rents are 900 total 450 per unit. I have to put 25% down because its going to be owned in a LLC. My interest on the loan will be 6%.

[Brian Adzadi]

@Austin Hoover

You can use the Quicken Loan Mortgage Calculator app to find you answer. But this is what I got so far.

75K on a 30 year mortgage with 25% down payment and 6% interest, $1,248 in annual taxes (104x12=1248) and $924 in annual insurance (77x12+924) is equal to $518.25 monthly PITI.

So, $900-$518.25=$381.75, then  $381.75-$150(utilities)=$231.75, also $231.75-$72.00(PM fee)=$159.75

All in all, you will have $159.75 in monthly cash flow. If that seems like decent monthly cash flow for you, then go for it. If it doesn't keep on looking.

If it doesn't look like good monthly cash flow, remember, you have $7,250 left from the 26K to use for emergency repair or renovations.