How To Calculate the Numbers on a 4-Plex (house hack and standard)
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- เผยแพร่เมื่อ 21 ต.ค. 2024
- In this video, Chandler shows you how to run the numbers on a four Plex for a standard investment or a house hack.
Chandler David Smith has been investing in real estate for the last eight years. He currently owns 114 units of rental real estate and he is about to close on two more 4-plex’s. In this video, Chandler runs through the numbers on a Fourplex. He shows you how to analyze the financials and what to look for in the perfect deal. If you’re looking into buying a 4 Plex or any form of real estate investing this video is for you.
#fourplex
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Great video! I like how you compared the different scenarios and I didn't have to scour YT for hours. Straight to the point, appreciate you!
@chandler I’m buying two four plexes in IF right now, closing in 2 weeks, and my insurance quotes are in the 1500 range. Please tell who you use and what coverages. Maybe do a short video on this! Thanks man!!
I’m looking to do the same atm! How’s the quadruplex coming a long?
Chandler, your videos are always very interesting and informative. If I may make a suggestion, I'd like to see a video of how you find so many good deals, especially these days where the real estate market is so overheated.
Either be a realtor or have access to listings before they go public. They get to prescreen everything for themselves.
One of the best yet! Can't wait for more
Bro I’m not gonna lie I was really surprised about how much you thank. I learned from you, thank you!
Hey Chandler. I took your course and it was amazing and informative with tons of directions. In the course you kept hammering home that we should be at a 15% cash on cash return and not go below that. On this in other videos I now hear you at 10%. Has your position changed? Just asking?
Wtf
Go with the 15 lol.
🦗🦗
How do you find info on a property if it's C+ or higher? I've never seen that grading system.
The INSURANCE section is under YEARLY EXPENSE, is that $425 the insurance payment on a yearly basis or monthly basis?
Just bought a duplex using the VA loan.
The intro is soo cool
You're crushing it man. Thanks again for all the great info
Would you say bundling utilities in with rent is a good way to prevent people from running them up and causing liens to be incurred on your property?
So glad i came across this video im about to buy my first rental property (4plex) out of state (moving there soon) but will renovate as i work for someone else
Hi Chandler, Thank you so much for the video and the app. Does this also work well for the Canadian market?
Step one is making sure they sign up for pest control the rest will fall in to place after that. :)
Why is this so important? Is there other things behind that?
@@missiongreats5822ask em again bro, I wanna know 😂
@MatanColl
What site/app you use of keep TRACK of all of your renters paying their monthly RENT?
These are all helpful tools for real estate investors. Thanks for sharing Chandler 👍
This is based on a 28% Expense to Income ratio ($2700 per door per year) while using a management company.
This seems very low for overall expense.
Most underwriting that I have seen they suggest using a 40% to 50% expense ratio????
The numbers are very different using a 40% ratio, what should I be using?
The Maintenance $$$ seem very low, ($1,150 per door per yr) ???
This has helped me a lot.
What would happen if your bought a 4 plexa and got an FHA loan for it and their was an unfinshed basement that you turned into a 5th unit. Would that be allowed?
How is Insurance yearly expense only just a little under $430?
Amazing Video Chandler :) Stay Healthy and Stay Safe :)
Thank you!
@@ChandlerDavidSmith Smith it seems like the number you use are only deals an experience investor can get. For example, how do you get $0 on utilities. All properties I tried to buy previous landlord are paying water, sewer and trash. When I call for an estimate on insurance I get quotes between $800-$1000 and Property Management is between 10-12% for a fourplex. So how does a good deal look like for a new investor like me or how do I get my numbers as low as yours as a beginner. Thanks for all of you insight in advance Chandler hope your wife is doing better, god bless you guys.
Great video! Would you advise going into a new construction duplex, 100% LTV? Thanks
I like how the books in the background are rainbow colored
Not physically possible to do in Midwest (Iowa) I’ve done 1500 homes not one time. Has a cash flow at the 3.5% be above -150% cash flow
Can we get a updated video with todays interest rates? Would you still do a 30 year loan ?
We are currently looking for a house hack, and we use your app. However, with an FHA or low down payment MIP and PMI are a BIG difference. Like around $3,545 for 3.5% down FHA. Why not show that in your examples? Is that different for every lender?
@ Chandler David Smith it seems like the number you use are only deals an experience investor can get. For example, how do you get $0 on utilities all properties I tried to buy previous landlord are paying water, sewer and trash. When I call for an estimate on insurance I get quotes between $800-$1000 and Property Management is between 10-12% for a fourplex. So how does a good deal look like for a new investor like me or how do I get my numbers as low as yours as a beginner. Thanks for all of you insight in advance Chandler hope your wife is doing better, god bless you guys.
@Sanchocloz his lender is probably a friend
I found one local to me that I can FHA house hack in a relatively nice and upcoming area... ran all these numbers and found a 35%+ cash on cash return... lol hope I ran these right... now all I gotta do is find money for the down payment.
I'm extremely nervous on pulling the trigger on my first 4plex , with an fha loan. All the 4plexes in my area are anywhere between 375-475
Where are you looking?
@@Ceez_Crypto south Texas
Did you end up getting It bro?
@@Tonychavez098 got a meeting setup with a realtor next month 😬
@@basicAlex keep us updated
yes exactly what I need
I wonder what numbers you used when determining if u were going to pursue the property or not (before having all the actual numbers)
CDS Rental calculator is not there anymore
Illinois prop taxes kills cash-flow, upwards of 10k a year
app not available for my android in CA
😒
Thank you for this!
Hey Chandler I have a family of 6 looking to start rental propertys do you think it would be smart to buy 4 Plex turn it into 3 Plex via construction to have proper housing for my family what could be positive and negative of this and is it smart to do so?
Thanks! Great stuff
When using fha for quadraplex what happens if you don’t occupy a unit within 60 days
Holy Crap. Thank you!!!!!
Great information and love the app. I noticed you plugged in rents on where you plan on taking them. Shouldn't I run rents on where they currently are?
If you're doing a value-add deal then you're putting money into the property to improve it and its' rent along with it. Sometimes even without making any changes to it, you can just start raising rents (depending on local landlord laws) as soon as you become the owner of the property to match current market rent prices since the previous owner might not have ever raised rents and everyone is paying well-below going rate. It's actually very common, especially with "mom and pop" owners.
Is there a max number of units this calculator is good for? Would this work on a 38 unit?
Hey Chandler, Have you came out with an android app version?
@David Chandler i am trying to buy a 5 unit that brings in 90k a year. I offered 650k. The seller said I was nuts. He said his realtor told him he should get 10 times the gross income 900k. Its is fully rented needs a roof and a couple of other things for about 40k.
I'm I off or is the seller off or both? The property is a B minus neighborhood.
Thank you
4:48 how is his insurance so low?
He must have mistakenly out the monthly amount in instead of the yearly amount.
I am confused on the app. When I run the numbers it’s saying I will have a way better return than I believe I would. I don’t see where it accounts for the expenses even tho I put them in. It only talks about the debt service.
Great video
Is the CDS app also for Android? I can't find it
So what’s a good cap rate in financing
Thank you for sharing. How can we acquire the calculator that you used in this video?
thats what im wondering
link is on his website
Wow long are the days of 3% rate. Even though mine is at 2.75, todays rate is around 8%. And this is 2024, two years diff
Nice work 🎆✨
Did u see stradman in the intro
Where do you get your ranking from?
How much are you paying property management?
So 0% down owner occupied around 10$ profit per month plus getting paid 4400 at closing is good right?
What "rule of thumb" operating expense estimate % do you use on a property managed 4plex? Hard to analyze deals without knowing how to gauge opex on a 4plex.
Lenders will usually take the square footage of the property and multiply by .14 to come up with utilities if thats what you mean by operating expenses.
Seattle
How can I find 10 units off market
When looking for rentals does distance ever come into play or are you willing do have them 1-2 or even 3 hours away?
Personal choice
the app dont work it says needs updated
Please update the app, I can't download it because it was meant for older phones
Are you on Android?
Can 4plex be rented as commercial office besides just month to month rentals?
Check the zoning. You will see some of them are mixed zone. You can use it for residential but also put offices there. It's usually specified in the listing. IE, in my market, Orlando, quads that are in Downtown, are mixed use
@@RodNavarroDotCom Thanks for your response. I guess I'll have to check with the County.
The siblance on your mic is deafening. Great info though.
what state it this i live in california
do you have this app for android?
I couldn't find it when I looked. I'm on Android. So I guess not. I'm using DealChecker. It seems to have everything he mentions here besides the letter rating for properties
this guy reminds me of Don Lapre.. "All you have to do is run tiny classified ads.." etc.. same facial expressions, tilted head, etc..
4:14 In what world is a 6% vacancy and a 6% management fee "extremely high"?
Shouldn't those be closer to 10% to be conservative? The management shouldn't even be estimated. Those are set and transparent by management companies at 8-10%, but usually 10%.
How long do I have to live in one of the units before I can legally move out?
1 yr.
I don’t understand why total cash flow would drop when you change the downpayment from 25 to 3.5... the percentage should change, but why would cash flow drop drastically? For the longest time, I thought the app was broken
your mortgage payments are higher when you owe 96.5% compared to if you owed 75%.
Dropping the down payment gives you substantially more debt which gives you the larger payment for your mortgage
You should put date and state location those numbers had to be from last century 375 for a 4 plex Or just as samples not real 2023 numbers
Imagine getting $850 rents for a C+ property in 2024. I am sure you're crushing it right now!
is the android app working ?
I'm so sad the duplex I just brought I'm running using his calculator right now and I have a negative cash flow of $376 per year and that's a conservative number:(💀
At least u got a property 💪🏼🎉🙏🏻
What did you buy it for and what is it renting?
@@jordancotter5885 the upstairs unit will be rented soon so will have a pos cash flow of 600$ . purchased for 160k. 1050/ unit
How do you update the app if you already have it on android?
Just delete and re-download or push the update button. I don’t know I don’t know android ha ha Ha
Take Your Like
What app is this?
Now, do this with SFR. :)
What's the point of house hacking if you're putting down 25%? you can just use this property as a rental and not live in the unit
You shouldn’t put 25% down when you house hack. That’s not what the video said
The 1% rule tells me there are better deals out there....your monthly rents don't meet the criteria
I haven’t seen one real estate video that covers how many open loans you can have at 1 time🤦🏾♂️
10 personal loans if I'm correct. Chandler and Kris Krohn have mentioned it a few times.
After the 10, you'll need portfolio lenders
3.635% time capsule
The emojis and pop up text with sou d effects is a little bit much. Just constructive feedback
That intro what so fucking loud you woke up my wife
a run-down 4 plex nearby is asking 1.375 million. ain't gonna cash flow
where the hell can you find a 4 plex for $375K?
Ikr 😭
💪🏽💪🏽💪🏽
Dude, are you high? Lol 😆
Cap rates measure value and CoC is a return metric. Your 7.34% cap rate was calculated incorrectly and only tells you that you paid the seller V=i/r $13.62 for each possible dollar of NOI. If the cap rate comps are 10% and you then correctly valued the property using direct capitalization then you would realize that you overpaid $3.62 for each dollar of NOI. Now if you paid cash where did your 7.34% "return" go ? See it is not a return metric.
Change that interest rate to 7.5% today. Doesn’t work. Rent would to go up 70%.
What areas are you investing in Chandler?
This is why they say landlords are leaches. Let’s just buy properties and increase rents 200-300 bucks. That’s fucked.
How that’s you make more money 💰 so dumb
Yep people like this guy are why the middle class is getting shafted into renting for their entire lives
This guy looks like that one snapchat filter
Buy property, jack up rent by 1/3… got it.
🙏🏼💪🏼
What insurance can you get for a multi unit building for $425 a year 😂
I had this same question. In CA similar price 4plex I’m paying $2,000/yr in hazard insurance. Hook me up with your insurance person Chandler!
@@MattTheMortgageGuy I just ran numbers on a property in Hollywood FL and insurance is $5500 per year
I’m wondering this also, or is that $425 the monthly payment?
Exactly. Insurance for a SFH is already at 1000/year. These numbers don’t make sense but I understand his example.
Anyone else getting dharr man vibes from this dude lol
Where the hell did you find a 4 plex for 375k. Lol 😆
How in the world is his insurance so low???
Ok, but $12,000 per year, that’s it?!?! After income tax, that is $9,000/year, and your credit is maxed out and interest rates are rising so value is depreciated. I’d prefer to just buy and hold Bitcoin, which will 4-5X by 2025.
Lol ok champ
Where the F do you buy a 4plex for $375,000?? In the middle of the ghetto???
This video was a couple years back haha probably worth 600-700 now