Please help me evaluate this deal on a 4-plex

[James Stevens]

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*This link comes directly from our calculators, based on information input by the member who posted.

Please help me evaluate my analysis of this 4-plex. Is there anything I missed or that might need to be modified for a better outcome? I ran the numbers on it through both the BRRRR calculator and the Rental Property Calculator, but with the refinance it wasn't pulling enough cashflow or cash on cash return. All input and help is greatly appreciated.

Thanks

JAMES

[Aaron H.]

If you're getting a range of 75-115 on the insurance I'd say call it 100/m or so unless you have time to get a real quote from an insurance agent and lock down a better number. Might very well be 75, it just struck me as a possible source of under-estimating expenses.

If your plan is to owner-occupy for a year, just make sure you run the numbers with the reduced cash flow and make sure you can still afford it. Looks like that's the difference between $400/m in positive cash flow and -$400/m in negative cash flow. Nothing wrong with living relatively cheap for a year while your tenants pay down your mortgage and then increasing your cash flow down the line when you rent the 4th unit, just make sure you know what you're getting in to.