Good Deal Or Am I Missing Something?
Hi Everybody,
After looking at several properties, putting offers in, walking away from them, I feel this one might be the winner. I am needing your opinions and thoughts on this deal. I will give you everything from A-Z. Please let me know if I am missing something, if this is a good deal, or my thought process on what Im about to offer needs rethinking:
Units: 4
Total Rooms: 10
Garage: 2 - Car
Lot Dimension: 70 X 160
Taxes: $2203/yr
Utilities - Ten. Pay:
Electric: $25/mo
Gas: $25/mo
Water: $25/mo
Unit 1 $650.00/mo - 1BR
Unit 2 $415.00/mo - studio
Unit 3 $650.00/mo - 1BR
Unit 4 $415.00/mo - studio
Garage $125.00 - rented by unit 1
Monthly Income $2,255.00
Full Price
Worst Case Scenario $224,000 APR Rate %
80% Loan/mo. $1,135.00 6.5% APR
20% Loan/mo. $415.00 11% APR
Taxes/mo. $185.00
Mortgage Ins $50.00
$1,785.00 Mo. Payment
Total Rents $2,255.00 Mo. Income
Mortgage Payment $1,785.00 Mo. Payment
$470.00 Net Profit/mo
Pros
Great Rental Income.
Big back yard.
Fix-ups can be done in time.
Basement is clean and dry.
Can put coin laundry in basement.
Motivated seller.
$2100 in Security Deposits
Cons
Needs new roof, has 4 layers of shingles, max is 2.
Will need new gutters with the roof for proper water dispensing
Electrical wiring needs to be fixed. Decks and stairs need to be rebuilt.
Support beams in basement need to be reinforced.
Approx about $20k in repair costs to the cons. I am going to make an offer this weekend and offer $165k and see how seller responds. Your thoughts are much appreciated. Have a GREAT WEEKEND everyone!!!!
Proactive 1
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