Is $400,000 multi family 4plex in Florida a good deal??

[Cesar Gomez]

Is 400k multifamily 4plex home in Florida with FHA first time home buyer a good starting point ? I'm being told that's what I can afford and what I'm able to get and each unit has to rent for 1500 for me to make a good profit. What do you guys think about this ? I'm being told this by the loan officer. I feel like 400k is high but I definitely could be wrong, just want people's thoughts. I do want a multi family home in florida.

[Shawn McCormick]

Hey @Cesar Gomez I would be happy to help you evaluate the property based on the location it is in. Multi family properties are extremely low on inventory right now which has driven up prices. There are a lot of factors that need to be evaluated when considering multi family (Separate meters, age of roof(s), a/c's, what is age of property, could it have poly plumbing, Chinese drywall, federal pacific electric panels,etc. 

Do you have a spreadsheet to evaluate recurring costs, insurance, taxes, vacancy rates, PM costs and so on? Then you have to consider the current rental rates, are they market value, have the tenants been paying during Covid, are they month to month or have leases.

Lots to consider before jumping in, reach out and we can have a conversation some time. Good luck.