Analysis Help on a 4-unit house hack

[Jonathan Johnson]

Hello BP,

We've put an offer on a 4 unit apartment that we hope to live in on the weekends.  We have friends in a nearby city we are looking to move to. We plan on living in one of the units and renting the rest. I think I've done just about all my homework but would love a double check through the blog's number crunchers.

Purchase Price: $144,500
VA Loan, so no downpayment or PMI
Asking for closing costs covered by buyer and $6,000 in repairs. Waiting to see if that'll be negotiated.

Rents: A) $550 B) $600 C) $425 D) $600.   minus $600 since we are moving into B. I initially thougt the rents were really low, but the property is old and needs some updating so I think they might be accurate.
$1,575/month or $2,175 when we move out and rent our apt.

Expenses: Tenents pay all utilities except garbage.

Insurance: $923.44 or $86.87/mo
Garbage: $40/mo
Property Taxes: $236/mo
Mortgage: $687.48

Repairs & Maint: 12% since it's old, so $189/mo
Vacancy: 5%, it's in a quiet neighborhood with great schools, so $79/mo
Capex: 5%, $79.

$1,397.35

Repairs:

• The roof looks good from the street, however it's about 15-20 years old so I expect to replace in 5 years or so. I'll get a metal roof and I estimated it at about $6,000.
• One front door is near where two roof angles meet, and I imagine the gutter couldn't take on the stream at that intersection, because there's water damage on the inside of that wall that leads to the basement/garage. Sounds worse than it is, but I expect it to be around 300-400 + a gutter wall.
• All bathtubs are cast iron and nasty. Looking to refinish all for about $1800.
• 3 Sinks also are all nasty and old, will replace for about $750.
• One stove/oven appliance = $400
• Small siding on the exterior needs replaced = $300 (It's the triangle in the picture)

Would love any feedback, questions, thoughts, advice, or well wishes. I'll hear back tomorrow if our offer is accepted, negotiated, or laughed at.