4 Family
Ok so I know this is not a creative deal at all but I am looking at a 4 family building. I can buy it with 100% financing right now and it will just about break even. The upside to the place is that its in nice shape, has long term tenants, and the rents are pretty low for the area. I could buy it and raise the rents right away and I dont think anyone would leave. I know about being a landlord but just want to know if anyone has bought something similar and done something similar. I have numbers if anyone is interested. Thanks.
Sure
FMV: $125,000
Purchase price: $107,000
Rents: $350,375,380,380: Total $1485
Expenses:
loan at 7.25%: $750
Property Tax: $215/month
Gas: $360/month
Water:$75/month
Insurance:$50/month
The rents are quite low for the area. They could all easily be $400 or even $425.
[ Edited by billfaith on Date 02/28/2006 ]
I forgot to add the disclaimer that all this is given what you said about being comfortable with landlording yourself and the rents projecting upward.
[addsig]
Thanks for the reply
It is an older building but it is in nice shape. New roof, electric. Plumbing looks good. Has 2 boilers that seem fine. Its not certified as being weatherized and I dont know what that will entail. I offered $107 a month ago and was rejected. They accepted an offer from someone else but it fell thru last week due to inspection. Agent tells me that there were minor things but the buyer wanted out because they found something better. The pluses about it are location and history. 1 tenant has been there 10 years, 1 5 year, 1 3 years, and the last one 1 year.
i would only buy it if you really think you can raise the rents.
unless of course you expect the equity to go up in the next few years