Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

User Stats

3
Posts
2
Votes
Levi Brooke
  • Rental Property Investor
2
Votes |
3
Posts

SLC fourplex cash flowing deal

Levi Brooke
  • Rental Property Investor
Posted

Alright, I am in a deal right now on a fourplex.

I will owner occupy for the first year because I am going to use the VA loan.

Details:

Purchase price $890000

4 plex has been fully rehabbed

Closing costs are ~8k

Interest rate is 2.375%

Cash flow while living in 1 unit for 1 year is ~$50 a month minus expenses

This is what I have worked up and hoping everyone else can give me their opinion.

Live in one unit of the 4 plex for one year, nearly mortgage free. The three rented units will pay for the one I am going to occupy.

After the first year, move out and the 4 units at their current renting rates will cash flow ~$1200 a month minus expenses.

I think expenses will be fairly low do to everything being new as of this year.

After the second year I will have an ROI of 180% minus expenses.

Am I doing this right? I have a good steady job as an engineer that pays very well and am not at risk of losing it. Roughly gross 100k.

My concern is the $890000 debt I will have created.

What’s everyone’s thoughts and questions? I just want to make sure I am making a right decision here.

Thanks a ton!

Most Popular Reply

User Stats

3
Posts
2
Votes
Levi Brooke
  • Rental Property Investor
2
Votes |
3
Posts
Levi Brooke
  • Rental Property Investor
Replied

@Lee Ripma

Thanks Lee! The area seems really good. As far as statistics, this in SLC is ranked #1 for where young professionals are living and #6 for the best neighborhoods in SLC. I’m really excited about this and hope to close soon!

Loading replies...