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?????
Sounds good, choose your property carefully, make sure that there is a fair amount of cash flow before you purchase.
thanks for the response. what % of cash flow would you be looking at for somthing like this. Anyone else?