Can you be alittle more specific on purchase price. It seems confusing to me at least
Is it $275K per duplex with owner carrying mortgage with $50K down per duplex.
Or are you buying 16 units(8 duplexs @ 275K= 2.2mil) with only 50K down
Also the 75K rehab. Is that all 16 units?? where did rehab figure come from???
You want equity?? How much will interest rate be on seller financing?? rates are higher than banks, so it can be 8% or 10%, never know. is it a Interest only payment or PI and for how long. You need to know terms to figure out payment.
But you also want equity. The sky is falling and you want to be able to get out of the way if your ceiling collaspes…
The purchase price looks right for the gross rents BUT it is almost completely empty! OUCH! Can you afford to carry the thing while it’s being repaired and while you’re trying to fill it up? Is there enough demand in your area for so many 1 bedroom apartments?
$275k all 16 units together VL $8000
Down: $50k for all 16 units together
REHAB We have a rehab company and a money man, Our company did the rehab at an apt complex for money man. Money man said that if my husband says its a good deal he will fund . I Interest rate is 8.25% Seller wants to hold note for six months, not interest only. We will put in the offer either for him to hold two years or money man will pay. seller is very very motivated.
Heat is in the electric amount
Money man would pay for the repairs. I’m beginning to think your right. It sounded good, but seems like a lot for the small cash flow it would bring. The lot is big, so we could build more, but not sure if that would put is in bigger debt.
I emailed you too=) We’ve talked in the past. Being a property manager for 20 years, I was never on the purchasing side. As far as filling up the property, and marketing the property, I’m no blondie :cool The money man said he wanted 17k a door, with a huge rehab, the actual costs of the rehab, he wants to review on a case by case basis.
if you got to put $75k into a property you paid $275k to get to an ARV of $375k, that does not sound like a motivated seller (especially if 14 out of 16 units are empty).
in essense, your profit for investing $75k, a hellva lot of work and taking on risk is only $25k in equity??? if you are a little off on your valuation or the market drops even 7% then all that work is for nothing (financially)
While the operating potential seems OK, you need a lower price and a longer owner carry than 6 months.