Apt numbers

General Real Estate Investing
1

Here goes:
Asking $380,000 for
8 unit building with 2 garages and coin-op
(6) 3bd/1bth - 1 vacancy - current avg rent $775
(1) 1bd/1bth - rent $450
(1) efficiency - rent $400
(2) garages - vacant - s/b $100/mth
coin op - Avg inc $200/mth
Total Current Inc: $59,100

Annual Expenses:
Taxes - $5900
Utilities - $14,400 - current owner pays all except cooking gas
Maintenance - $2,500
Vacancy - $3,500
Insurance - $2,400
Total Exp = $28,700

NOI - $30,400

Debt Service assuming $275,000 mortgage
7.5% 30yr amort
$2000/mth

$6,400 income $533/mth

I’d like to offer $325k, with the seller carrying 10%, and putting down $20k

Here’s the kicker - the owner just closed on this place in June of this year for $335k. He’s an older fella who bought a bunch of rental properties and hasn’t been able to manage this one as it’s the furthest away - he won’t hire a management company. He had a contract on it 2 months ago, but the buyer fell through.

Does this look like a good deal? What else should I be considering? Am I missing anything?
Thanks in advance,
My3sons

2

Does he owe anything on the property?

3

don’t know. . .I’ll ask the realtor tonight

4

Can you get the sellers package from the realtor?

Can you obtain actual 2-3 yrs owner operating expense reports?

Do you have a current rent roll?

What is your exit strategy?

What state are you in?

5

I’ve got all of the disclosures already.

I’ll ask for the expense reports, but, as I said earlier, the current owner has only had possession for 6 months.

The place is now fully occupied with the following rents:
5 at $750
1 at $775
1 at $475
1 at $400
Laundry $200/mth

I plan on keeping the place and drawing income from the prop. Should net me about $1500/mth

I’m in PA

Thanks for the follow up.

6

great, let me know when you are ready.