HELP MEEEEEEEEEEEE
Thanks guys for taking the time to help me.
Here are the details of the deal. The house is sold by the owner, a friend of mine.
She asks for $255,000 for the house.
House has 8 units.
-- 4 units are one bedroom and
-- 4 units are two bedroom
House is in great condition and has been maintained very properly. The area is real nice, and the city has some 150,000 population.
Total gross cash flow is: $42,000
Money comes of course from the tenants ( I think that she charges very low rent compared to other apartments in the area)
Taxes are: $7200 and
Utilities are: $3,800 a year
I think of buying this property, but I am afriad to have a tough time to get the financing:(. I may think of flipping this property for a small profit, if you may be interested.
Any suggestions on this deal are highly appreciated.
Love,
Diana
null
Why is she selling? Perhaps there is a problem you don't know about.
If you do buy it... get the rents up, clean up whatever you can .. landscaping etc... and have clean books and you could probably sell for a good profit.
WHERE IS THAT PROPERTY WHAT STATE YOU IN
?
Seems like a reasonable deal. The 2 biggest variables are:
#1. all other expenses:
-Vacancy
-Utilities
-repairs
-capital expenditures (long term repairs like roofs, driveways, etc).
-management costs (if any)
-turn over
-uncollectable rents
and #2 What interest rate can you get on the money?
If you can get 95% of the rents, 6.75% interest (blended rate/30 years), and keep all other expenses under $300 per month it should give you a CF of about $450. Seems respectable.
It doesn't seem like an amazing deal, but a decent one. I'd call it amazing if all other expenses were less than $175 per month (10.4% CAP and $575 CF).
Good luck