Rookie loan question-how do I qualify for a non-owner loan? Do they pull off my credit score and income? Like a residential loan?
Fannie/Freddie investment property loans ask for all the same information as an owner occupied. When it comes to calculating your DTI, they will include the current rent rolls * 75% against the new mortgage.
In general, tenants in multi-family stay for shorter periods of time and are less desirable then tenants in SFH within the same general location. But every market is different. The above is generally more of an issue in a market with lots of SFH properties and only a few MF. If there are mostly small multi-family properties around, then it's not a problem.
Owner utilities: $3796
What utilities is the owner covering? It sounds high for just the common area.
Renters have been here for between 3-10+ years.
Long term renters are often paying under-market rent. Do you have an idea of whether they are paying market rent or not? If not, will you have issues moving them up to market or asking them to leave if they do not want to pay that amount? Rent control, landlord/tenant laws, etc.
Price: $115,000
Down Payment: $23,000
New Roof: $?
Other deferred maintenance: $?
Rent: $2100
Taxes: $200
Owner utilities: $316
Lawn care/snow removal (tenant doing it will not be there forever): $?
PI&I (guesstimate $1k/yr insurance): $778
Management (you should pay yourself): $210
Repairs: $210
CapEx: $210
Vacancy (mathematically there will be vacancy at some point): $210
Net: -$34/mo
From the information you have given us, as an investor I would be wary but interested for two reasons. First, because tenants there that long are probably significantly under market. Secondly, because the owner utilities look like at least water for the units, maybe some others as well. If so, then the tenants can be paying for their portion of utilities as well.
Cons that would make me take a pass if any were present- 1) If most the properties in the area are SFH, 2) Rent control or strong tenant laws that would make repositioning the property difficult, 3) Other expensive issues besides the roof (wiring, plumbing, mold in the wet basement), 4) Rents are already market rate and/or utility bill back is disallowed/uncommon in market, 5) Serious work needed during tenant turnover unless the rent increase to market would be large (at an avg of $525/unit, it would take forever to get that remodeling investment back).