Are Good Deals That Hard To Find?
I live in southern NH and thanks to MA the multi families I'm finding (even the dumps) don't fit into the criteria of what some would call a good deal. Any suggestions on how else to find a good deal other than real estate classifieds etc?
As an example one of the better properties I looked at broke out this way:
$395,900 Market value
$379,900 Asking (firm)
$7000/yr fixed costs
$2875/mo gross income (6 units)
According to the owner all of the rents are about $100 to $200 under current market rates but I don't know that I should bank on that as it might be hard to raise them on the existing tenants so drastically.
Any feedback?
Hey, don't waste time and energy on these deals that when you look at the numbers, there's little to no ROI and the risk is too high. Determine your strategy and exit strategy upfront, devise a written plan and follow it. Keep making those calls; eventually you'll run across a deal that fits or very close to your strategy. Move on it.
I agree with GDickson, even if you got the monthly income to $4075 ($200+ for all 6 units) and that's a big if, the numbers are still too tight. Base your asking price on current rents and anything you get above will be gravy down the road.