Please review my 4 plex analysis

[Sean F.]

Hello BP'ers,

I've located a multi-family property not too far from me that i'm interested in. My plan is to purchase FHA and occupy one of the units. This will be my first real estate purchase. My intent is to hold the property long term and continue to buy up properties once I satisfy the 1 year OO for the FHA financing.

The 4 plex consists of four 1 bedroom 1 bathroom units all on the same floor. I realize this isn't ideal and will experience higher vacancy than normal.

Price $80,000
Loan amount $77,200 (3.5% Down payment)
Payment: $414.43 (30 year, 5%)

Monthly
Rent $2000
Expenses: $1000
NOI $1,000
Payment: $414.43
Cash flow: $585.57

I have not calculated PMI or Insurance into the numbers yet.

On the surface, the numbers seem to work. Now that this property passed the screening tool, i'm not sure where to turn.

I looked up the 2011 taxes online $6,455.42

I'm going to drive by the property today and check it out. I will check for seperate meters, roof condition, etc...

What am I leaving out? What else should I be researching on the property?

I checked public records the property last sold for $59,780.00 in 1997.

I was only able to find one 4 plex comp in a half mile radius. It's a 8 bedroom 4 bathroom and sold for $90,000 April 2012.

Thanks in advance