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Updated over 4 years ago,
New Investor - 4-plex opportunity analysis help
Hi bigger pockets fam…I'm REALLY new to this as in I joined the forum about a week ago. I have an opportunity I would like to get some perspective on if you wouldn't mind. I located a new construction 4-plex in an area I am familiar with, list price is $575k. I exploring the use of my VA loan to finance the entire amount, no money out of pocket. The mortgage with P&I, and Tax would be roughly $4000/mth. Each unit rents for, conservatively, $1200/mth. I would owner occupy one of the units and rent the other three. Leaving me to pay $400/mth for my living situation. I would manage the 3 other units myself, cap ex and repairs should be minimal since it's new construction.
My goal here would be to rent the 3 other units for ~60 months, live in my unit for 24 months and then rent that unit for the remaining ~36 months. I would then look to sell the property at the 60 month point.
My numbers on mortgage buy down and appreciation suggest about $150k equity at the end of 5 years. I would look to sell and then utilize that capital to do more deals with. The equity figure does not include any cash flow I would get the final 36 months from renting the 4th unit.
Are there any glaring omission in my analysis? Any and all thoughts appreciated!