Help analyze 4plex for Buy&Hold

[Michael L.]

L&G,

Trying to start on my next deal. I have 2 properties that are doing reasonably ok, but feel like I still lack experience when it comes to analyzing deals, especially MF.  How does this 4plex numbers look?

• Price: $200K
• HOA, Insurance,Tax Combined: $1050 monthly (verified on P&L)
• Est. Mortgage: $750 ( regular investment loan, 20% down)
• Monthly Revenue: $3,000

I plan to manage it myself for now, but it will go under PM sooner or later. Would love to hear your thoughts on this. Thanks!

[Mike O'Connor]

Area aside, I strongly agree with @Kyle Penland in regards to investing in properties with HOAs. These dues do nothing but eat into your profits month in and month out. Also, while there is the threat of a 1 time assessment (the association charging its residents a 1 time fee that will generally cover a large project) there is also the inevitable increase of HOA dues every couple of years. Will you be able to increase your rents to keep up with these HOA increases?

In my opinion, the HOAs eat profit and are costs that impact your property that you have little/no control over... that is unless you want to get on the board at the community... but that requires time/effort.

Best of luck.