Our First Multifamily

[Christopher Adkins]

Hi Guys,

We are looking to purchase our first multifamily property. I used the MFC Analyzer to get most of the numbers. It is located very close to a private university and it stays rented through out the year as the University has a pretty big R&D so there are a lot of long term graduate students that need quality housing. Here are the specs:

Purchase-92,000K

4 BR in Suites-550 per month

RE Taxes-1854

Insurance-1400

I can put 30% down and finance it for under 10 years or buy it all cash. I have the reserves. I am not really sure which would be the better move there. I have not inspected it yet but based on the pics the property looks to be in decent shape. This one is through an agency I haven't dealt with before. 

The CAP rate and NOI's look fantastic, maybe to fantastic! I really want to hit a home run with this one and could use some season investors advice. If this one is legit there are several other properties within this area that I could get at for a steal. One of the things I really liked about it was its location to other commercial space. Several of the other homes in the area have been turned into things like doctors offices, accounting offices etc. I am not sure how it is zoned and I am really not sure where to look to see if it could be zoned only commercial.

Thanks

Chris