Quadplex Analysis

[Mark Douglas]

Hey BP!

Considering my 1st purchase...  I ran it through the BP rental calc and it cash flowed $28...  I'm hoping I did something wrong!

Anyway,  what do you think???  Here are the numbers:

Property - FHA Owner-occ Quad

Purchase - $180k

Downpayment - $6,300 (3.5%)

Mortgaged Amt - $173,700

Mortgage - $1,250 (including taxes & insurance)

3 highest (current) rents - $1,765 (total/mo)

Cash flow - ???

I know I'm probably paying too much....I'm going to ask for a price of $165k, and see what happens..

Is this the worst deal in the world, or is there hope?  I'll move on if the numbers don't work....no attachment to the property :)

[Andrew Syrios]

A couple of questions:

- What are the current rents? Do you think any of them are low? 

- Are there any repairs you need to do to the building? You definitely want to include that in your analysis.

I don't know what you're including for expenses, but assuming they are reasonable estimates, this doesn't necessarily look bad (of course, I have no idea what comparable sales are going for). 

Remember, you're planning on living there. So what would the cash flow be if you were able to rent all four units? Basically, under this analysis, you'd be making $28/month plus living for free. That's not too bad.