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Updated over 4 years ago on . Most recent reply

SLC fourplex cash flowing deal
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

@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!