Updated about 10 years ago on . Most recent reply
Potential quadplex investment
Hey BP!
Been a member for about 4 mos now but i decided it was time to get serious this past weekend and have been analyzing properties ever since. I saw one that caught my eye and from the property analysis tool software, it seems that it would generate positive cash-flow. I've watched several of Brandon's seminars and went on the high end in regards to expenses such as vacancy and cap ex. I would probably use an FHA 203K loan as rehabs would be needed. Please let me know what you think as well as what might be missing. Thanks!
Most Popular Reply
Andrew, I have a few questions:
1. If your purchase price is $160k and your rehab is $60k, why is your ARV $200k?
2. If you are doing an FHA loan then you will need to live in one unit for at least a year. Do you still collect $3k in rent with you living there? If not, your cash flow will be less while you live there.
3.Are you sure you can get a 3.5% loan even if you are paying 2 points. That seems a bit low in today's market.