I ran across a 4plex deal.  

I ran into my drywall guy today while grabbing lunch .

I ran across a 4plex deal.

Luis Leiva at Culture EstateHe deals with Newark daily, and understands foreclosures, REOs and investment properties as well as anyone.

This week I ran into a bump in the road and am looking for advice.

I ran the numbers on my own and I got wildly different calculations.4 units are 2bd/1bth and rent for $5501 unit is 3 bd/2bth and rents for $675Total rents of $2875Owner pays some utilities at a cost of $8,800/ yearHere's what I got running it with the BP Rental Calculator (as self-managed):-Purchase price of $250,000 (I did estimate of $300k ARV price)-25% down: $62,500-Amount financed: $187,500-4.5% interest: P&I of $1,042.19-Capex: 7%: $201.25/mo-Maintenance/repairs: 7%: $201.25/mo-Vacancy 5%: $143.75/mo-Property taxes: $191.67/mo-Utilities: about $733.33 mo-Insurance: $220/moNOI of $14,209Income $2,875.00 - total monthly expenses (including debt service) $2,733.10 = $141.90/mo cash flow and 2.64% COC with a purchase cap rate of 5.68%.I told her I must be missing something, and she asked if I “had the NOI at $21,662?”

I ran the numbers in all different combinations..except that one.

So I ran some numbers on the basic information provided, and just like most properties I’ve come across, it appears the only way to cashflow with just 20% down is to buy at a substantially reduced price.

I ran into this issue on my last flip.

I ran my numbers pretty conservatively and still see a $350+ per month positive cashflow.