I have a seller of a commercial building, that has apartments and businesses. He has a 1st on the builing of $150k with pmts of $2,800 mo. Taxes,maint, ins and water all total $1,300 a month.
So outgo is aprox $4,100 with current situation.
Income with rents is $6,200 and two more offices rentable, so another $1,200 possible. Totalling $7,400
He’s selling due to not wanting to be a landlord anymore and health issues.
He wants to refinance the $150k for $200k and will split the 50k with the partner then carry for 20years.
Tax assesed value is $525k Hes selling for $595k
Is this a deal? Can i get it done with out an appraisal due to low ltv?
I figure it is a 9% cap rate at best. It’s an OK deal. Poss a very good deal with owner financing. More info is needed. but it is worth pursuing.
Can i get it done with out an appraisal due to low ltv?
What you wrote makes no sense but I am guessing what you mean is YOU get a new mortgage for $200K and he finances the rest. Why do you not want to get an appraisal? Are you going to skip the rest of the due diligence too?
Taxes,maint, ins and water all total $1,300 a month.
That still leaves a lot of expenses you haven’t mentioned.
Trash removal
snow removal
Landscaping/ mowing
management - A biggie
reserves - a biggie
turnover cost
Vacancy rate
Etc.