Closing on 6 Unit Property Today

[Ben Fulcher]

So today the wife and I are closing on our first real estate investment. It is a 6 unit complex we are buying for 146k. We should net around 400 in cashflow monthly which includes 15% for repairs and maintenance as well as 5% for vacancy. I fully expect to outperform especially on the vacancy due to the fact that some of the tenants have been there for close to 20 years. Also, I expect to outperform over the long term with repairs too due to the fact there is no central heating and air currently. The biggest hiccups we ran into was a large change in loan terms coming out of underwriting which changed the COC returns. So the down payment changed from 15-30% and the loan amortization changed from 20 years to 15 years because the bank wants to get to around 65% LTV.