Is This A Good Deal? (Houston, TX)

[Joshua Storm]

Hello all!

My wife and I have been exploring the option of real-estate investing, and through the advice of friends we stumbled upon the BiggerPockets podcast. We have listened to several episodes, and are trying to get a feel for our market and how to analyze a deal.

One of the suggestions on the podcast was to come here to the forums and get that hep - so here we are!

The deal I am looking at right now is a quadplex in Houston, TX (where my wife and I live). It is a four-plex, which seems ideal for starting out. It has (4) units - (2) 1 bed/1 bath, (1) 2 bed/2 bath, and (1) 3 bed/2 bath. For the Zillow link, see below:

Link: https://www.zillow.com/homedet...

Our goal is to live rent-free in our first property. I have developed my own rental analysis calculator (based on the one here on BP), and assuming a rent of $750 a month for the 1 bed/1 bath, $1,400 a month for the 3 bed/2 bath, and assuming we live in the 2 bed/2 bath, and an interest rate of 3%, I anticipate to pay less than $150 a month to live here. For a break-out of my anticipated expenses, see below. Can anyone confirm that my numbers are reasonable, and point out anything I may be missing? Thank you all, and excited to join the BP community!

Purchase Price - $300,000

Purchase Closing Costs - $4,500

Rehab - $10,000

Loan Down Payment - $60,000

Loan Interest Rate - 3.00%

Loan Term - 30 Years

Rental Income - (2) * $750 + (1) * $1,400 = $2,900 / month

Property Taxes - $5,622 / yr (from Zillow)

Insurance - $200 / month (unsure about this one)

Repair & Maintenance - $290 / month (10% of rent)

Vacancy - $145 / month (5% of rent)

CapEx - $145 / month (5% of rent)

HOA Fees - $745 / month (from Zillow)

Other - $50 / month (LLC Licensing)

~ Joshua T. Storm

[Dylan Eldred]

Hi Joshua I just looked at your numbers and I noticed that you had 60,000 down for down payment. Since you would be occupying the property you could possibly put down as low as 3.5% if you wanted.