Help Me Analyze This Deal!

[Jordan Noble]

Thank you to anyone who looks at this deal!

Purchase Price: $600k

Units: 8 (2 quadplexes next to each other)

Current Rental Income: $6,915

Current Expenses - TOTAL $2,365.17

Taxes: $232.50

Insurance: $200

Gas & Electric (landlord paid for now): $571

Water & Sewer: $320

Trash: $41.67

Property Management: $1,000

The plan is for my partner and I to each purchase 1 of the quads ($300k each) with individual FHA 3.5% down loans. This would then take the deal to:

Rental Income: $5,396 (owner occupied)

Expenses - TOTAL $1,365.17 (now will be self managed)

Taxes: $232.50

Insurance: $200

Gas & Electric (landlord paid for now): $571

Water & Sewer: $320

Trash: $41.67

Debt Service - $3,315

Cash Flow - $716 while we are living there and increasing to $2230 after we move out.

The plan is to purchase the place under an LLC with 50% ownership of each with 2 separate loans on the properties. Let me know what you all think!