8- Unit Apartment Building Down Payment Money Needed
Ok I am going to give this a shot. Please let me know if I somehow violate the rules here.
I would be the principle or rather my LLC would be the principle on this deal.
I am going to give the MLS id number (191961) so that you can look it up if interested. I usually go to www.homesbyrachel.com and click on the search the mls tab. it is under multi family search. I do also have the full MLS listing that I can email if you would like. I can also get you a copy of the financials for that property too.
The deal is located in South Bend Indiana ( near Notre Dame- Go Irish!).
The area is a good reantal area. The rent comps on that area for one bedroom fall between $450-$500 per month. The building is a large brick 8 unit building located near the downtown area.
ASking price is $189000 which roughly calculated is a gross rent multiplier of 5. I don't believe it should be at a 5 yet I plan to offer 150K which puts it at about a 4. ( Tenant problems and general upkeep of the building keep it lower)
What I am looking for is an investor to put up down payment cash for the property. The terms would be 11% interest over a period of 15 years. The amount would 30K.
I am hoping that I gave enough info and that I adhered to the rules. As I said earlier, please let me know if I didn't.
Thanks
All
Joe
What would the builing appraise for?
according to realtor, building appraised out for $210K.
[addsig]
How about trying a hard money lender for your downpayment/rehab costs? The rate may be higher than you quoted, but you can refinance.
If you can bump appraised value up through your improvements, you should be able to refinance at 80% and have your original price covered. (even if you had to pay full price which is now $184900)
Good Luck!