QUADPLEX DEAL - PLEASE READ

[Johnny Manziel]

B+ area, built in 2006, parking, separate utilities, has good parking spots, real hardwood floors, wash/dryer exposed in kitchen, 2br/1.5ba units, good rental history, rent is $3200 gross, but ill live in 1 unit so the gross is $2400.

$270K purchase price

FHA loan

3.5% down ($9,450)

P&I-$1321/mo ($260K financed)

INS- $100/mo

TAXES- $137/mo (taxes are currently $274/mo b/c its in the investment class)

PMI-$187/mo (would like to own for a year and try to refinance with another bank to get a conventianal if I can get a high enough appraisal to drop PMI or lessened)

TOTAL PMT-$1745/mo

LIVING FOR FREE!!!

$2400-$1745= $655/mo for repairs, vacancies, CAPEX. I'm not counting property management I'm an adult and don't need someone to manage 3-4 units for me. That is about 20-25% of gross rents.

After i get back on my feet, (because this will take all of my cash basically), I could maybe raise the rents to $850-$900/each, but its not a priority. 

This is pretty much a turn key quad that would require little repairs or maintenance in the near future. *fingers crossed*

Let me know what you think?!?

[Kenneth Mooney]

Johnny Manziel I always wonder if you're THE Johnny Manziel.

I would say a couple of things....(1) your numbers seem off somehow. I feel like the return will end up being low to nothing. (2) PM is something that is a skill and a system that needs to be perfected and I feel like you're underestimating (1) the difficulty and (2) the importance of a good property manager.