[Calc Review] I would love some feedback on this 5-plex!

[Sam Bernard]

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

[Geordy Rostad]

Hi @Sam Bernard

You are missing your property management fee. Even if you're going to do it yourself, you should pay yourself market rate for it as far as your calculations go. You want the deal to still work with professional management. 

Another thing is that this property will not qualify for a residential loan. You need a commercial loan for it because it's 5 units. 4.2% sounds to me like a residential loan rate. So does 20% down. So does 30 year amortization.

Unless you have already talked to a bank, you should plan for numbers more like this:

1) 25% down

2) 25 year amortization

3) 5.5% interest

4) professional property management will be required by the bank if you are not already experienced with rentals.