MFH analysis - what do you think?

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if you only pay 3.5% down, then you'll pay PMI for the life of the loan until you refi, but that was from a podcast with Anka using FHA. I believe she recommended 5% so I'd double check the FHA regs just to be safe. It's called the homestead exemption, and will reduce your taxes. Applicable up to a 4unit. Since it's your first investment, why not live in it for 2 years so you can be excluded from capital gains up to 250K unless you plan to 1031.

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@Amaf J. - I'm in the market looking for the same kind of deal. When I run the numbers on a 3-4 unit complex I run them twice. I'm very conservative in my numbers and run 10% CapEx 10% Vacancy 10% Property Management. I always add in the cost of PM. Even if I'm not paying for it and running it myself I always run the numbers like I would be paying someone else. That way if for any reason I HAVE to pay it. I'll still be CF positive.I figure that if I run the numbers and use high expense expectations to factor my offer price. Then it will be less likely I over pay for a property.As I stated above, I run the numbers twice. Once to see what the CF will look like with me living in the unit and once to see what the CF is when the property is fully rented out.When I'm living in the property, then it being under $100 per door is okay, but I like it to be over $75 in that case. When It's fully rented I make sure it's over $100, but more like $150.Looking forward to seeing your progress. Keep us posted!

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I don't see why you don't figure in your own rent as income? You have to pay rent somewhere so why isn't your rent part of your income? If the rent here is much more then you would pay or do pay you can just figure in the lower amount as income . Meaning, If the apartments in your 4 plex rent for $1,100 and you are currently only paying $900 well then just figure that apartment is only generating $900, other wise just figure the market rent that your tenants are paying.

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two rules of thumb I try to include in my criteria:1. Must cashflow with property management in place2. minimum of $100 per door per month.So yes, figure out what the price is that would give you these results and know that that is your maximum price.

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@Bram Spiero, what are you thinking overall about the deal? Needs a lower purchase price? Only good if I manage the property myself?

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@Amaf J.I ran your numbers and changed some of your underlying assumptions.The going interest rate is around 3.875 at the moment, so I assumed 4% instead of 5%I assumed $200 PMI.I doubled the vacancy to 12%. It might in reality be 6% or lower but I prefer conservative numbers.For Maintainence and Capex, I assume 10% each, in my thinking, you pay into a kitty for maint and Capex until you 5,000 in each and then you can stop holding this money back. Whenever you dip into these funds you top the kitty back up.I assume that with you living there, you are not going to use property management. I suggest looking at the deal with you in one unit and no property management and with all 4 units rented out and a property manager in place.you living in 1:NOI: $8,514CF: -$7,795renting out all 4 (with property management)NOI: $10,341CF: -$5,968Renting out all 4 (without property management)NOI: 16,266CF: -$43

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@Derek Woods, the current gross is $49,380 for all four (4) units. If I occupy one of the units for the first year, the gross will be $37,980 for three (3) units. If the analysis is based on the three (3) units, the gross including vacancy will be $35,701. If I factor in the expenses and debt service, the net will be -$2,294. I'll pay out of pocket for the first year of living in it. What I'm thinking of possible doing is splitting the apartment with a roommate and charging them $500 a month for rent. If that's the scenario it should come out to a CFBT at $3,706.Any feedback?

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@Amaf J.I'm confused...What is all 4 units current gross??? I am asking if you factored in that 1 of the 4 units will not have rent coming in at all. If the 49k represents gross income on 3 units minus the 6% vacancy. Then your covered.

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Yeah your pricing in a bit high there but seems like it could work. The deal I have under contract is for 170K with gross rents of $2215. I am not sure how it will work out yet I am still working with my lender as this is kinda stretching my limit. Keep up the good work @Amaf J.!!

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@Derek Woods, I applied a 6% vacancy rate for the year. And I did not know that about the taxes, I definitely have to look into that.@Hersh M., I figures were provided in the financials but I did increase most of the expenses to be safe. I'm confident just to use them as a criteria check but I'll do my due diligence before agreeing to anything.@Adam Spencer, I'd love for everything to even out but all of pricing here is expensive. Got to do some digging to make that happen. How did your deal work out?