First-time house hack need analysis assistance!

[Michael B.]

1900s Quadplex (fourplex, 4-unit), (1)2BR/2BA owner-occupied, (3)1BR/1BA, Gross Rent 2640/mo, (2)1yr/(1)Mon2Mon, Electric Separate, Owner pays other utilities, Offer $469k, VA Fund Fee 2.3%, 2.5% rate, 0 down

*Currently renting a 2BR/2BA appartment for $1444/mo

Cost Assumptions
Purchase Price $469,000
Land Value (25%) $117,250
Building Value (75%) $351,750
Improvements $0
Closing Costs $14,070
Total Cost $483,070

Financing Assumptions
Downpayment 0.00%
Finance Amt $479,787
Downpayment Amt $0
Interest Rate 2.500%
Mortgage (Years) 30
Mortgage Payment $1,896
Cash Outlay $14,070

Revenue Assumptions
Monthly Rent $2,640
Vacancy Rate 3.00%

Revenues
Rental Income 2,640
Vacancy/Loss Rate 3.0%
Vacancy/Loss Value (79)
Gross Income 2,561

Expenses
Property Taxes Annual 5,398
Insurance Annual 1,956
Maintenance & Repairs Annual 3,500
Utilities  Annual 3,150
Variable Cost PM (% Income) 10%
Flood Insurance Annual 1,293

Total Expenses 18,370
Net Operating Income (NOI) 12,360

Cash Flow
NOI (Cash Available) 1,030
Mortgage 1,896
Total Cash Flow (866)

CF & ROI (Outsourced Propert Manag.)
Annual Cash Flow ($10,389)
Cash ROI -73.84%
Total ROI 3.48%

CF & ROI (Doing My Own PM)
Annual Cash Flow ($7,316)
Cash ROI -52.00%
Total ROI 25.32%

cap rate 2.64%

Option to pay $1200(qtr point) to get 2.325 rate

In a desirable Norfolk neighborhood.

[Aaron Zimmerman]

I would check rentometer.com and get an estimate of rents in your area. I would say there's most likely better deals for sure. This seems like a bit of a stretch even with low interest rates.