Josh Uy, REALTOR www.JoshUy.com

Payment & investment tools · Bay Area

Multi Family Investment Calculator: Duplex to Fourplex

Run the monthly payment on a home, or see if a duplex, triplex or fourplex pencils out.

The Deal

Price, loan and the cash you'll need

Down payment (type % or $)
Loan $747,500 · mortgage $4,973/mo (principal + interest)
Loan term
Down payment$747,500
Closing costs$12,000
Repairs at purchase$15,000
Upgrades$0
Total cash needed$774,500

Units

Fourplex · 4 units

Market rent is what each unit could rent for today. Current rent is what the tenant pays now; leave it blank if the unit is vacant.

1
2
3
4
Income at market rents$10,920/mo
Income at current rents$10,020/mo

Vacancy & Expenses

per month
% of rent lost to empty units
$546
% of price per year
$1,557
per year
$400
% of collected rent, 0 if self-managed
$830
% of rent for everyday fixes
$546
% of rent saved for roof, HVAC, appliances
$546
water, sewer, trash, common areas
$450
landscaping, pest, HOA
$0
Operating expenses$4,329/mo

Vacancy comes off the rent, so it isn't in this total. The mortgage is counted separately too.

Run the numbers on
ALMOST THEREMarket rents
3 of 4 targets met

Max offer $1,452,000

2.8% below your $1,495,000 offer
Or keep your $1,495,000 offer: total rent of about $11,210/mo (now $10,920) would meet every target.

Your Targets

Set to Bay Area benchmarks for 2-4 unit buildings. Change any number, or uncheck one that doesn't apply (debt coverage doesn't matter on an all-cash purchase).

UseMetricThis dealTargetResultMax offer
Cap rate
4.85%
≥
%
Pass
$1,586,0006% above offer
Cash-on-cash
1.66%
≥
%
Miss
$1,452,0003% under offer
Debt coverage (DSCR)
1.22
≥
×
Pass
$1,510,0001% above offer
Cash flow per unit
$268
≥ $
/mo
Pass
$1,740,00016% above offer
Monthly cash flow
$1,072$12,860 a year
Rent multiplier
11.4GRM · price ÷ yearly rent
Price per unit
$373,7504 units
Rent to price
0.73%monthly rent ÷ price (1% rule)
Expense ratio
41.7%expenses ÷ income (50% rule)
Break-even occupancy
85.2%of full rent needed to cover all costs

Price Check

The highest price that still meets each target. Past the dashed line (your offer) means it works at your price.

Offer $1,495,000
Cap rate ≥ 4.5%$1,586,000
Cash-on-cash ≥ 2.0%$1,452,000
DSCR ≥ 1.20$1,510,000
Cash flow ≥ $0/unit$1,740,000
Works at your offerNeeds a lower price

Cash Flow

Where the rent goes · Market rents

Vacancy $546/moOperating expenses $4,329/moMortgage $4,973/moCash flow $1,072/mo
LineMonthlyAnnual
Gross rent (fully rented)$10,920$131,040
Vacancy (5%)-$546-$6,552
Rent after vacancy$10,374$124,488
Operating expenses-$4,329-$51,951
Net operating income (NOI)$6,045$72,537
Mortgage (principal & interest)-$4,973-$59,678
Cash flow$1,072$12,860

Common Questions

Targets, max offer, cap rate, cash-on-cash and DSCR

What targets does the multi family calculator use?

Bay Area benchmarks for 2 to 4 unit buildings: a cap rate of 4.5% or more, cash-on-cash return of 2% or more, debt coverage (DSCR) of 1.20 or more, and cash flow of $0 or more per unit. You can change or turn off each one.

What is the max offer?

The highest price that meets every target you have on. The calculator lowers or raises the price until each target just passes, keeping your down payment percentage, rate, rents and expenses the same. Property tax moves with the price.

What is a cap rate?

Net operating income divided by the price. NOI is the rent after vacancy minus operating expenses, before the mortgage, so the cap rate compares buildings as if you paid all cash.

What is cash-on-cash return?

The yearly cash flow after the mortgage, divided by all the cash you put in: down payment, closing costs, repairs and upgrades.

What is DSCR?

Debt service coverage ratio: net operating income divided by the yearly mortgage payments. 1.00 means the income just covers the loan, and lenders usually look for 1.20 to 1.25 or higher.