Deal Analysis - Multi-Family in Charlotte, NC

[Harsha K.]

Dear Fellow BP Members - I am a part time investor (did 3 SFR deals so far) venturing into MFR for the first time and would appreciate any insights you can provide.

Information for the MFR (all units combined)

• Property Price - $450,000
• Age - 11 years old.
• Tax - 1.5% annually
• HOA - $900/month (HOA is responsible for everything exterior, so no roof expenses etc..)
• Rental Income / month - $5000
• Vacancy (assumption) - 1 month / year
• Cap Ex / Maintenance (assumption) - $600/month
• Macro market is definitely good in the Charlotte area - although, I wouldn't like to factor in any appreciation.

2 questions for the community : 

When I did my math, the deal sounds 'okay' to me? What's your viewpoint?

Since this is a 5-plex, would I need a commercial loan?

Would greatly appreciate any insights. Thank you!