What do you guys think?

[Luke Dilorenzo]

Hello everyone,

I was hoping I could get some insight on my current in-process deal. Today (thanks to bigger pockets) I put my first legit offer in on a 4-plex. If accepted I am going to owner occupy with 3.5% FHA. I am super excited but trying not to be blinded by the light

The following is the scenario (sorry if I am bad at explaining, I am just a building inspector not a math wiz lol):

Asking 485,000

Offered 450,000

Down Payment 15,750 from 401k

Total monthly expense insurance, tax, loan, pmi = 2937

Rent estimate 950/ unit or 3800/mo plus onsite coin laundry which is tbd

I will be renting my current home for around 1700/mo tenant pays all utilities

Current homes monthly expense = 1100. 1700-1100=600

Since i will owner occupy one unit my 4 plex income will be 2850. 2937-2850= 87/mo plus garbage paid by me which is tbd.

600 - 87= 513

That leaves me with getting paid 513/mo to live in the 4 plex. That isnt adding in other expenses like managment (which we are doing in house), repairs, cap x, however our current home was just top to bottom remodeled and the 4 plex was top to bottom in 2012. After closing I should still have around 50,000 in reserves.

Bottom line is, I just want to do whats best for my family and not put them in harm's way from a financial prospective. Do I need more reserves? Does this look like an ok deal to some? Bad to many? Please let me know your thoughts and thanks in advance!