Analyze My Deal!

I have an elderly couple who are looking to retire that would like to buy a multiunit and then sell it to me with 100% owner financing @ 6% interest w/a 30yr mortgage. To buy this multiunit they are selling their out of state vacation rental for 1.1-1.3 mil. and using a 1031 to purchase a property outright closer to home. They plan on holding the property for the required 1year & 1 day then selling it to me with owner financing. In central Ohio this will get a 20-30 unit property. This will be the largest deal I’ve ever done. I will be in charge of locating the property for purchase that I will be acquiring. My question is realistically if you were me what kind of numbers would you be looking for to make this as profitable as possible? I’m thinking a B or C class property in a B neighborhood that needs cosmetic repairs or just something that I can use the cash flow to bring raise rents and bring it up to market over the first year or two. What do ya think?????



Comments(2)

  • groverm16th March, 2006

    Sounds good, choose your property carefully, make sure that there is a fair amount of cash flow before you purchase.

  • deltroit17th March, 2006

    thanks for the response. what % of cash flow would you be looking at for somthing like this. Anyone else?

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