Any Creative Thoughts On This Deal?
I have a lead on a multi family package deal. (3) quads $135k ea, and (1) triplex $110K. $515,000.00 for total deal. The comps for the quads is as high as $170k for recent 4plex sales. With a potential $90k equity in the deal, does anyone have any suggestions how I could offer on this and use the equity to my advantage with $0 dn payment. 11 of 15 apts rented so far. I still have some due diigence to do but any ideas?
Are you dealing with a motivated seller?
How is the rental market?
What is the vacancy rate?
What will be your NOI?
What is your cash flow?
What is your cap rate?
What is the cash on cash return?
Are these A, B, C, or D properties?
Multi-families value are based on the rents, so make sure you know there really is 90K in equity.
Before anyone can give you creative ideas, you need to know why the seller is selling and if your creative ideas coincide with what they need. Are you solving a problem?
But you can use some of the similar methods that people use to buy houses, to buy the properties.
Nebulous is right, you will need all that info for your due diligence. Also as he stated it is based on the rents. Find out what the current rents are to figure out what the properties are truly worth.
As far as a no money down deal, you will have to have the seller either make your down payment, take a second, and/or do a seller wrap around until you refinance the property. There are many other ways, but those would be a good start.
Good Luck,
Kyle
If you are really buying 20% under market (35k on a $175k value and $135k price) then you do have some room here. Just a thought but why not put them all under contract, sell two at the higher price during the contract period. Take the profits from those two and use it as your downstroke on the other two?