A Reasonable Deal?

Looked at a 4 unit that was listed for $350K, $340K ..... and now $297K (which is about right). The mortgage is 235K. The building and units are in fine shape; no work needed; all 4 units occupied and are on month-month.

I offered the seller 255K for the 4unit; take over the 235K mtg and 20K on note payable when I refinance.

The rental from 4 units are $2280 and the mtg is $1925 (PIT). It has 4 gas and electric meters.

Comments(2)

  • donanddenise27th December, 2006

    Marginal, from where I stand, there is not enough margin to allow profit unless you count depreciation and tax benefits, could be worth it long term, good luck
    [addsig]

  • SKrei29th December, 2006

    I figured it might work as I dont have to get a new loan now and will pay seller the $20K (no monthly payments) when I refinance in 1-2yrs.

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