Need Advice On Next Steps
Hi all,
I saw two properties that I like. One is a 2 fam, the other a 5 fam. I'm totally new at this so I'm guessing maybe I should start with the 2 fam. Anyway, the asking price is just about equals 1% of the gross rents. A mortgage at 7% in the amt of the asking price (minus 10% down) would result in a positive cash flow of about 40% (rough numbers: 2k in rents - 1347 in mortgage)
My one concern is that it has an inground boiler. I have not gone inside, I've driven by to take a look at the neighborhood and it seems ok.
What should I do next? Get an inspector to give me a qualified opinion?
Thanks
-Ariel
inground boiler?
do you mean and inground fule tank for the boiler. If so be very carefull. They dont last forever and if it is leaking the whole things turns into a nitemare.
Many times I've wanted to do an inspection BEFORE making an offer. The only problem is you may just be throwing money away if another offer is accepted while you are inspecting.
You can make your offer contingent on inspection, but I personally think that takes some of the edge off negotiating.
If I were you, I think I would call a couple of places in the yellow pages, and just get a worst case scenario in regards to replacing that boiler. Make an offer with that worst case scenario in mind, and make it contingent on an inspection.
Hope that helps! Good Luck!
But I've heard horror stories regarding leaking boliers. I hear there are epa rules and other items that come into play. Not just simply replacing the boiler.
Maybe I'm making something out of nothing? How can an underground tank be inspected?
Thanks