3 Plex in Florida: What do you think?

[Rico S.]

Good day BP family,

I actually should have been brainstorming with the BP family. A little about my goals and journey. I am a newbie but not at heart. I have been looking into small multifamily with plans for trading up to bigger mid size properties. However, we all have to start somewhere. I am super motivated and passionate about the business. I plan on investing in multifamily for cashflow where I can add value and hold long term. I have met, talked, and worked with a lot of people. I have even analyzed and toured a lot of deals but have not found anything that fit with my criteria. I plan on doing all the ground work myself regarding any upkeep and managing. Ive been on the grind for about 3 years and actively looking for about a year. I search the MLS and send out direct mail. This particular property came up the other day and below are the details. Any feedback will be great.

3 plex:

Location is in Port Orange, Florida

its a single family 2/1 with a duplex in the back that has a 1/1 and a efficiency unit. 

2/1: $850

1/1: $600

Eff: $435

Total= $1,885/ month 

Income $22,620/ year (assuming everything runs smooth) 

List price is $169,000 but may be some wiggle room for about $155-160k.

Expenses are claiming 25% annually

Insurance= $1,500

Water= $2,400

Tax= $1700

total= $5,600

However thats not even including management, maintenance & repairs, or cap ex. But lets entertain it. 

I plan on living in one of the units and renting out the others. So I will be putting down 3.5% down. Debt service would be at about $9,886.

Based on the expenses provided it would be a great deal but having the conservative approach, being that its a small multi lets assume 40% for expenses.

Income- $22,620

Expenses- $9,048

NOI= $13572

Debt Service- $9886

CashFlow= $3686/ year, $307.17/ month, $102.39/ unit

Any feedback will be helpful.

Best Regards,

Rico