How About This Deal?

It is a 3 unit all brick. new roof newer furnaces and hot water tanks.
2- 1 bedroom
1- 3 bedroom
$1250/mo rent.
Asking price of $74,900.

flips

Comments(11)

  • madbikerinvestr5th July, 2005

    What is the location?

  • flips75th July, 2005

    it is in Erie, pa.

  • commercialking6th July, 2005

    Looks pretty good on first blush-- do you have any expense numbers? Historic vacancy rate? Historic uncollected rents?

  • flips76th July, 2005

    the expences are taxes $1657. insurance $509. utilities $3624.
    The vacancy rate is next to nothing. It is in a good neighborhood and is well taken care of. It has long term tennants so the non payment is low also.

    Flips

  • flips76th July, 2005

    here is a break down of the numbers what do you think.



    Your Investment Preferences
    Loan Assumptions
    Downpayment: 10.00% ______Interest Rate: 7.000% Loan Term: 30 years ______ Loan Points: 1.00% ______ Closing Costs: 3.00% ______ Expense Assumptions
    Property Tax Rate: 2.000% ______ Hazard Insurance: 0.75% ______ %
    Management Fee: 0.00% PMI: 0.50% Home Owner Dues:
    Annual Maintenance:
    Income Assumptions
    Rent p/ft:
    Rent Margin: On Off
    Occupancy Rate: 85.00% ______Annual Rent Inflation: 1.00% ______Annual Property Appreciation: 3.00% ______ Display X Annums:






    Enter Property Data
    Price: 74,900
    Square Feet: 2200
    Zip (Optional):
    $ Per/Sq Ft: $34.05





    Purchase Data
    Price: $74,900
    Closing Costs: $2,247
    Loan Origination (Points): $749
    Downpayment: $7,490 (10.00% downpayment)
    Total Cash To Close: $10,486
    Loan Amount: $67,410




    Monthly Pro Forma (Year One)
    Mortgage: $448
    Property Insurance: $47
    Property Mgmt: $0
    PMI: $28
    HOA: $0
    Maintenance: $333
    Property Tax: $125
    Total Monthly Expense: $981
    Monthly Rental Revenue: $1,320
    Pro Rated Vacancy Charge: $198
    Monthly Cashflow: $141




    10 Year Pro Forma**
    Year Expense Income Cashflow Interest Tax Deductions Appreciation Equity Total Benefit
    1 $11,773 $13,464 $1,691 $4,697 $12,181 $2,247 $684 $4,622
    2 $11,813 $13,598 $1,785 $4,647 $9,081 $2,383 $734 $4,902
    3 $11,516 $13,733 $2,217 $4,594 $8,636 $2,528 $787 $5,532
    4 $11,557 $13,870 $2,313 $4,537 $8,524 $2,682 $844 $5,839
    5 $11,598 $14,008 $2,410 $4,476 $8,407 $2,846 $905 $6,161
    6 $11,640 $14,148 $2,508 $4,411 $8,286 $3,019 $970 $6,497
    7 $11,682 $14,289 $2,607 $4,340 $8,158 $3,203 $1,040 $6,850
    8 $11,724 $14,431 $2,707 $4,265 $8,025 $3,398 $1,116 $7,221
    9 $11,767 $14,575 $2,808 $4,184 $7,886 $3,605 $1,196 $7,609
    10 $11,810 $14,720 $2,910 $4,098 $7,742 $3,825 $1,283 $8,018

    --------------------------------------------------------------------------------

    Totals $116,880 $140,836 $23,956 $44,249 $29,736 $9,559 $63,251

    Total 10 year ROIC*** is 603%

    Flips

  • InActive_Account7th July, 2005

    looks pretty good, make sure the loan does not have prepayment penalty.

  • cjmazur8th July, 2005

    I have followed the HUD and IRS sites. Both of which you can regstered for and they will email you.

    There seems to be strong competetition but good deals can be had.

    The fact that all most all are out of the local area make then expensive to check out.

  • cjmazur8th July, 2005

    lease-up or a rent stabilization as you fill the new units.

    What area is this?

  • InvestorPaul8th July, 2005

    cjmazur-
    The area is McKinney, N. Dallas / Collin County. There is a move to revitalize the historic district of downtown but the city wants to make sure there are still residential housing. For example, on one major street (suitable for commercial dev.), they chose keep it zoned SFR or MF. Lease up ramp should only affect first year cash-flows.

  • cjmazur9th July, 2005

    if you can capture a niche of say 5-20 plexes, you might want to see what the general plan calls for in terms of rental hosuing in the area?

    Is there Redevelopment agency (RDA money as grants, cheap loans) availble.

    The general plan should also tell you the density to which you can build (e.g. 50/arce or 5/arce as examples of HDMF and prob. SFR)

  • ecollier9th July, 2005

    If you are looking for a partner let me know...Im just down the road in Allen.
    Ed

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