Help me analyze this deal for a C+ 4-plex in Fort Worth
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Jodi Tommerdahl alright so first thing is closing costs. You currently have them as zero but it will cost you 5-7k I’m guessing to close.
Secondly, your interest rate is likely low. Probably closer to 5.5-5.625 percent, maybe even higher since it’s multifamily.
Did you get a quote for that insurance or are you just guessing? You should get a quote I’m guessing your insurance is low. In Dallas you get hail and high winds and the insurance tends to be higher. Plus the value here is much greater than what I pay for my 75k single family.
I pay about 40 a month for that insurance which is low/good deal so I’m guessing this property would be more like 150-200 a month.
So once you add the closing costs and likely higher insurance costs this is a poor deal. Your return is around 4-6 percent.
If you live in Dallas and want to continue to live there long term I’d invest in a out of state market that is relatively close such as Little Rock or Memphis. If you have 80k to put down that’ll buy you 4-6 properties in ether market or a small apartment building.