Excel sheet I have been working on to analyze my first REI

[William White]

Thank you in advance for any help with this. I am currently looking at some multifamily investments in my hometown. This would be my first REI and I am trying to do this right the first time. I am not necessarily asking if this one deal in particular is any good (especially since I am not going to be including enough details about the property or my situation to allow for any meaningful deal analysis to occur).Instead I am asking for advice on how I am looking at my numbers.

I am likely pursuing an FHA loan at this time for the low cost of entry. The first spreadsheet is if I just keep the FHA loan for 30 years and never refinance (I think at some point you can stop paying mortgage insurance on FHA loans, maybe when you hit 20%. So by year 7 or 8 the monthly cashflow may actually improve by ~$500)

The second spreadsheet is if I decide to refinance at year 2 with whatever down payment (~$55k) is needed to get my total equity to 20%. Monthly expenses will be incorrect on this graph for the first two years because of the mortgage insurance that is omitted. Also not sure if my mortgage payments will drop from $2,655 to $2,082 with the refinance (I got this number by just calculating a new 30 year mortgage, at the same 2.625% interest rate with 20% down instead of 3.5%)

I threw in capex numbers sporadically to approximate the ~$675/month calculated in expenses (~$80k over 10 years)

Does these seem like reasonable spreadsheets? Anything obvious I am missing?

BP would not allow me to upload the excel sheets. If you would like me to share these spreadsheets, just DM me. 

Thank you for taking a look at these.