Good deal or not?

[Jason L.]

Hey BP investors,

I have decided to do a deal with my local city that includes HUD funding. I will build a 4-plex modular unit, each 3 bed 2 bath. I will live in one and rent out the other 3. The city will reimburse me up to 50% for the other 3 units. The city will also have a 20 year lean on this property that requires me to rent the 3 units to HUD qualified families for those 20 years.

Here are the numbers:

Total project cost:  $437,180.00

City's Reimbursement: $155,730.00 (equity in project)

VA Loan amount for 30 yr fixed: $281,450.00

Rent fixed by HUD for each unit: $876.00 x 3 =$2,628.00

I will save $1250.00 in rent a month

Mortgage, taxes and insurance: $2,444.15

Vacancy 7%= $272

Management 10%= $388

CapEX 5% = $194

Repairs 5% = 194

Cash flow= $386.79

What do you think?

Thanks in advance......