My Second 4 Plex (owner occupied)

[Anthony Gayden]

Here we go. I have this property under contract, and just had the inspection today. I plan on moving into one of the units and living for free. I ran all of the numbers as though I wasn't living there to give me an idea what to expect in a few years. The guy I am buying it from has owned it since 1991, and it is in good shape.

Tucson, AZ

4 - 2 bedroom/1 bathroom 800 sq. ft. units. Built in 1986, two single floor buildings. Currently fully occupied. Monthly rents are at $600/month.

Price $152,000

Down payment $5320 (3.5% FHA loan)

Closing Costs $5866 (Bank of America closing cost calc.)

Gross Annual Income $28,800

Vacancy Loss 10% $2880

Adjusted Gross Income $25,920

Property Mgmt: $1944 (7.5%)

Maintenance/Supplies $2592 (estimate based on 10% adjusted gross income)

Water/Utilities $0 (tenants pay all utilities including water/sewer/trash)

Annual Mortgage $12,036 (includes insurance, taxes, and PMI in payment)

Estimated Total Annual Expenses $19,217 (mortgage/taxes/insurance/PMI, vacancy loss, maintenance, property management)

Estimated Annual Income $6708

Estimated Cap Rate 12.33%

[J. Martin]

I did my first 4plex FHA, and good for you for round 2! Still need to refi it!

I live in CA, and closing on a 4plex in Oakland tomorrow. My numbers are almost the same as yours, except the price and rents are multiplied by just about 3X, with slightly higher square footage. But I'm buying it beat-up w/ vacant units and rehabbing to hit those numbers. Unlike you're turnkey...

Sounds good! I love FHA and your ambition! @Anthony Gayden

@Michael Wentzel , it put a bit of extra strain on my relationship w/ my then-girlfriend when she moved from our apt to the 4plex, but knew I planned to do it no matter what.. More delicate when she's your wife!