Trying to buy first multifamily but seems impossible....

[Matt Keller]

So I came across this blog post and when I saw the first example for a Multifamily unit, I frowned thinking I had gone wrong somewhere.

Let me preface this by saying I'm completely new but I just don't see how a 300k mortgage can be paid with 1600$ when including taxes, PMI and insurance. Help me see the light!?

Perhaps I need more guidance on how to properly assess these costs but I've spent maybe 6-7 weeks now (a lot on BP), educating myself when I have time, so I can position myself for my first real estate purchase. I've spoken with several lenders about going the FHA route to purchase a multifamily unit and have excellent credit.

The estimated mortgage payment I came back with on a 275k FHA Loan…

FHA – 3.5% Interest Rate

Down Payment 3.5% – $9625
Mortgage Insurance – $298.55 (Monthly)
Taxes – $580.00 (Monthly) – Estimate
Hazard Insurance – $150.00 (Monthly) – Estimate
Principal & Interest – $1511.06 (Monthly)
Total Monthly Payment – $2539.61

So…. where am I going wrong here? It can’t be taxes since even if we eliminated taxes from my real world example I can’t even come close to Brandon’s 1600$ target for a 300k mortgage.

Perhaps this isn't the best place to ask but clearly I need help. Maybe my problem is simply in the estimates I’m using/being provided or perhaps its all the lenders I’ve spoken to? I just don’t get it….

I can find a way make a good real estate investment for a multifamily home with a 1600$ mortgage, insurance & PMI expense. I can't do it (at least in my area) for 2600$

Help!?