Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 10 years ago,

User Stats

24
Posts
3
Votes
Travis Grossi
  • Newark, NJ
3
Votes |
24
Posts

Does this Multi work?

Travis Grossi
  • Newark, NJ
Posted

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!

Loading replies...