Is this a decent deal?

[Ali Ahmed]

Hi, I am new to bigger pockets and I am really enjoying the content this website has to offer. 

I currently got into a contract for 2 fourplexes and need help deciding if this purchase is worthwhile or not. The reason I am in doubt is because insurance for each fourplex is costing 150/ month and this takes a hit on my cash flow.

I am cleaning out my accounts to put 25% down on this. Conventional loan 30 years at 5.35%

Purchase price 305k each

Taxes 3600 (big lot) & 1800 

Insurance 150 each

Management fee 200 each

Hoa 250 each

Management fee 200 each

Mortgage (P&I) 1263 each

Total expense = (1263*2) + (200*2) + (250*2) + (150*2) + 300 + 150 = 2526+400+500+300+450= 4176

Gross Rents 2600 & 2800

Cash flow = total expense - gross rent= 1224 ( about 612 for each multiplex or 153 per door)

Based on the webinar I attended by Brandon from bigger pockets recently, he looks for anywhere from 100 to 200 per door in positive cash flow. I think it will be a little lower than 100 if I were to factor in vacancy factor and capex. 

I appreciate if you could let me know your thoughts as I am in the 10 day wait period and can pull it off if this is going to make me spend out of pocket.

Thanks in advance. 

[Cody L.]

You lost me once you mentioned you were paying more than 100x monthly rent.

I’ve bought and sold about 2000 units and offered and looked at many more. It’s hard to make money if you’re paying over 100x. Unless it’s a high end Property with little to no expected capex/opex and appreciation is part of your calculation