[Calc Review] Help me analyze this deal NJ NY

[Alejandro Obando]

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[Richie Thomas]

@Alejandro Obando I wouldn't include the rent for your unit as income for the period you plan to occupy the unit, but I would include it for the time period you don't intend to occupy it. For example, if your plan is to live in the property for a year and then move to a new FHA-financed multi-family and repeat the process, then you'd assume income from the 2 tenant-occupied units for year 1, and from all 3 tenant-occupied units for years 2 onward. Keep in mind that that you must live at the property for at least a year in order for you to keep in compliance with the rules of your FHA loan.

If you're not looking to become a professional property manager, and if you are looking for mailbox money, I'd suggest you budget for (and hire) a property manager for this and all future properties.  It's like investing in a Subway sandwich franchise.  Do you want to become skilled at scouting new restaurant locations and growing your portfolio of restaurants, or do you want to become skilled at making Cold Cut Combos and interacting with hungry customers?

The 5-6% figure was with respect to the purchase price.  A non-exhaustive list of closing costs includes loan application fees, points, prepaid homeowners' insurance, appraisal fees, inspection fees, transfer taxes, escrow fees, attorney fees, recording fees, prepaid interest, prepaid private mortgage insurance, title insurance, and title search costs.

Hope that helps.