[Calc Review] FIRST POTENTIAL PROPERTY! Help me analyze this deal

[Michael Menchaca]

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

Found this potential gem while practicing analyzing deals. Not sure if the numbers are right. The units are all leased out. Can I still maybe get it through FHA? Please help. Thanks!

[Jaysen Medhurst]

This looks interesting, @Michael Menchaca. A few things to think about:

• The listing says "cash or hard money only," so that may be your problem if you want to use a FHA.
• Listing also says "owner pays all bills." Not good. I see at least 2 meters in the photos. Why is the owner paying everything?
• Why did taxes double in 2017?

Regarding your analysis:

• Bump CapEx and Repairs to 15% combined.
• Vacancy may be closer to 8%. Especially if this isn't a great neighborhood.
• Insurance looks high. Confirm with a local insurance agent.
• What's the "misc." expense for?
• You're not accounting for any utilities. Expect to at least pay for water/sewer.
• Where is your tax number from? Listing says ~$4k/year or $340/month.
• I assume you didn't include rent for the 4th unit because you'll be living there? Good. Also run the numbers as a pure investment, so you know how they look after you move out.