All Forum Posts by: David Brackney

I am aware of all the extra costs associated with rerenting, vacancies, HOA, etc...My question was just to see if I was getting the "basic" math correct. Bigger Pockets website, YouTube videos, and so forth have been a tremendous help. The entire community here has been amazing! I look forward to posting whenever I finally make that first rental property purchase. Thanks again!

Yes.

The basics:

4-plex containing 4-units consisting of 2BR & 1BA each.

Cost:  $265,000  /  Estimated mortgage w/ me paying water & sewer is $1,350

1% rule:  $2,650

Estimated Rent:  $700/mo (tenant pays lights & gas)

4-units x $700 = $2,800 (this is >= the 1% rule)

$2,800 (rent) - $1350 (mortgage) = $1450 cash flow

*If I house hack and live in the 4th apartment, then my cash flow is ($2100 - $1350 = $750)

Am I missing anything, or do the numbers make sense?