Hello everyone!!
My name is Dan Ko, this is a post I shared last year and wanted to bring it back for anyone who missed it with a couple updated photos of the fourplex we purchased!!
"Cashflow isn't usually going to make you rich off of a couple properties. Many look for $100-$300/door some look for $400-$1000/door.
This is my first duplex, purchased 9 years ago for $100,000. Payment was $800/month, gross rents originally $1070/mo, now $2300/month.
Expenses
Mortgage (taxes & insurance included) $800
Maintenance $150
Capital Expenses $150
Water Bill $100
With very low vacancy, self managed I'm pulling
$2300 minus $1200 in expenses.
Net cashflow $1100/month or $550/door
I just refinanced this property at 75% LTV with a $250,000 appraisal.
My new loan is for $187,000 and my new mortgage payment went from $800/month to $1400/month.
Mortgage (taxes & insurance included) $1400
Maintenance $150
Capital Expenses $150
Water Bill $100
That's now $2300 minus $1800 in expenses.
Net cashflow $500/month or $250/door
I just lost $600/month in cashflow through this refinance but what I gained was a $108,000 check I can now use for a new property.
In fact, I'm under contract for a four family at $320,000. If I take the $108,000 I just gained, put $70,000 into the down payment & closing costs, put the additional $38,000 into updates/repairs once this property is stabilized I will be looking at.
Expenses for new four family
Mortgage (taxes & insurance included) $1935
Maintenance $250
Capital Expenses $250
Water Bill $200
Garbage $100
Shared Electric $65
Total expenses on new purchase are $2800/month
Total rents once renovated & stabilized $4800/month
Total net cashflow on new purchase $2000/month or $500/door
I just went from $1100/month in net cashflow on the first building to $2500/month in net cashflow on both and I did it without having to come up with any cash out of pocket.
Likewise I now get mortgage paydown on almost $450,000 in mortgages as opposed to $100,000 and I get appreciation on $650,000 in assets as opposed to $250,000."
