Buying first multifamily in Houston and need help

[Ayman Elmasik]

Hi there,

I'm finally ready to make my first purchase but I need some help in assesing the property and how finance it.

1- the property is 4 units with total 3,461 Sq. Ft built in 1983 and the asking price is 135K

Monthly Rents: $ 2,475

 Annual Rents $ 29,700

 Annual Vacancy 4.0% $ (1,188)

 Annual Expenses 55.3% $ (16,418)

 New Taxes 1.25% $ (1,682)

 Annual Mortgage Payments $ (6,338)

this is a unit in a condo, the condo complex has tennis courts, swimming pool, community laundry room, and security gate (i'm workign on the comps with a realtor)

Does that look like an attractive deal finacially?

2- I live in a house that I still have mortage on and I can pay 20% down, what is the best way to finance this deal?

Appreciate any help.

Ayman

[Nate Paoinchantara]

You didn't mention about HOA. Is it included in the Expense as well as the insurance? Also, I'm not sure what area in Houston that has super low tax rate. Regarding to financial, if you can still obtain conventional mortgage with your current debt ratio and income, I don't see why not.