Thank you for your reply, I really appreciate it. I am sorry I was a little vague in the post, I thought the calculator was displaying everything. I will break it down here, thank you for looking at it:
I will list them out here and include the calculator I ran on bigger pockets
-purchase price of $840,000 (hard money/private money/investors 25% down $260,000 ($210,000 is the 25% and the other $50,000 is loan fee, 1% for fixes, and $40,000 to close)
These would be monthly cost:
-4% interest on the remaining balance of the loan $580,000
-12% for property taxes at 10k property tax annually, so $833/month
-4% vacancy $280-4% Capex $280
-2% Garbage $150-10% property management $700
-4% repairs $280 (could slide 4-6 percent, this is a 4-plex)
-4% Water/Sewer $250
-4% home owners insurance $310
-43% Principle and Interest $3,007
I have monthly operating cost sitting at $6,091 and my Monthly income sitting at $7,000 with a monthly cash flow of $908
The 4 plex have all been renovated within the last year with paint, new inside, appliance, countertops, etc and are all rented out currently at $6,500 a month and they are under rent and can expect $7,000. I am basing these numbers off of the $7,000 income rent for the 4 plex.
If I take the 260K dollars for the down payment from investors/hard money/private lender/etc and offered them a 5-6 percent annual return, that would be $13,000 annually on the low side at 5% and a monthly reoccurring payment of $1,084 or quarterly payment at $3,250. Are the other avenues to pay the investors back or that you could recommend in this scenario that would benefit both parties.
I have calculated monthly cash flow at $908/month and would be losing money on the repayment of the investors money. Am I looking at this wrong or does that sound right. What other methods do you have to pay back the investor's money. I also plan to do a 3-4 year cash/out refi to pay off investor if the equity is there of course.
Lee
