Where can i find comps for 10 apts I found? I ask two local realtors and they didn’t have any. The seller wants 265,000 for 10. They need about 10,000 in repairs. He only charges 360 mthly which section 8 could get 460. easy. I have offered him 200,000 for them but want to find comps for area but where and is this sound like a good deal if he’ll settle for 200,000. He’s not got bck with me.
Also I have loans out for two rental houses so would bank loan to me if I show them that they are rented as I have no money but great credit.
Thanks for any help.
Commericial is usually based on income not comps. Comps stop being effective after you pass the 4 unit mark. It’s just too hard really to find comparable properties to your subject as there are so many sizes, shapes and flavors of commericial multi family. If 2 realtors told you they don’t have comps for that size and didn’t tell you that you should be using income to evaluate this building they are either blowing you off or don’t know what they are talking about. Find yourself someone that works with commercial multis and knows what he’s talking about.
I tell you what though, I wouldn’t spend much over $180k for it based on the units getting $360 a month.
Thanks , I was thinking that also but I know I could get 4600. mthly instead of his 360. as area gets that. Should I get one apt appraised and then X 10 for value and I know bank will have to appraise . Do you this can be done if I have good credit for 0 down and thirty years? :help
I’m not sure I follow you about getting one apartment appraised. Are these single units or a 10 fam building?
PS- An appraisal is only going to tell you the retail value of the building, not whether or not it will cashflow. And I will bet dollars to pesos it won’t cashflow at retail value.
I think I get you. No matter what its worth if it won’t cash flow… I am a little slow.:}:} I am going to try and start again with 170,000. He is asking 265,000 and they been on market as year. No wonder. I would probably go as high as 190,000 or 200, because rents are way tooo low. They pay their own utilities and the apts are brick and on a concrete slab and have 10 separate heat and c/a units. He does pay their water and garbage but has no interest in these apts as he has several . I so appreciate it!
Realistically $265k probably is a fair (retail) price…it’s just too much for you to pay and make money.
And yes to clarify, as far as you should be concerned it’s only worth what it will cashflow at in the eyes of an investor. Not to say you can’t sell it later on at retail price as I’m sure it will sell.