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Updated about 10 years ago,
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Does this Multi work?
I'm heading out to see our first two multifamily properties today with an agent and finally upgraded to Plus so I can use the calculator to analyze the deals, and a property that I thought would be great doesn't appear to actually work. I'm not entirely confident on the numbers I'm putting in, so I don't know if the property is a dud or if it's just me :)
2 Family Unit - 5 bed, 2 bath
Purchase Price: $169,000
Loan: $154,400 (FHA 3.5% down, 30 year fixed @ 4.1%)
Repair: $7500 (it was rehabbed in 2011, but I just figured we would need to prepare to do something)
Monthly Rent: $1,500 (we'd be living in one unit and renting out the other, but I should run the numbers assuming I won't be occupying, right?)
Electric: $0 (covered by the tenants)
The following monthly expenses are what I'm unclear on how to estimate:
Electric: $0 - covered by tenants
Water: $50
Sewer: $50
Garbage: $50
Insurance: $75
Vacancy: 4%
Repairs: 5%
CapEx: 5%
Mgmt: 10% (budgeting this even though we'll be onsite for the first couple of years, @BrandonTurner mentioned we should include it in expenses regardless)
When I run those, the monthly cashflow is -$173. Am I doing this wrong or does this property just not work? Any help would be appreciated!