Asking Price : $619,000
No. of Unit: 12 , 10 2-bed and 2 1-bed.
Price/unit: $51,500/Unit
Gross Income: $100,824 /Year
Net Income: $51,196 / Year
CAP Rate: 8.3%
GRM : 6.18
fully occupied.
it looks very good to me. how much do you think this property is worth??! i am waiting for the seller to contact me.
I’m a fairly green investor but at a glace those numbers look good. What are other 12 units going for in that area? How much work does the building currently need if any?
Looks decent. Not incredibly hot.
Any vacancy / upside?
as far as i know the condition is good. however i haven’t seen the property yet. I plan to get more information.
what are some questions i NEED to ask the owner?
Who gave you those numbers?
Where did they get those numbers?
Becareful that you are not being mislead into “false numbers”.
Ask to see their tax records, balance sheets and other finacial statments before signing your name to a contract.
I am always overly careful when numbers get big on commercial properties. Just my opinion.
Good Luck
Phil
Probably a little much for you to handle as a first time investor…
Plus, what kind of cash do you have to put into this deal?
the only reason i consider this is because the seller speaks my language, and he doesn’t understand English that well and he needs to move fast (though he is somewhat educated about RE) he is willing to give me very flexible terms etc…
but you are right. i need to concentrate on residential first.
I am not sure how lending works for commerical in the Canada but in the US you would need a fair amount of your own cash in to make the lender happy. If that’s not the case in Canada you may be able to work it. Also, if he will owner finance it you may be able to make it work. I still stick by my thoughts on it being kind of large to start off with.
Don’t listen to others. If you think this is a good deal, just do it. There is no such thing as TOO big. Think BIG and take BIG risks, you’ll get BIG profits.
Trump started out with a THOUSAND units in Ohio. Yeap… 1000 UNITS as his 1st investment.
He was a millionaire when he started…
Don't listen to others. If you think this is a good deal, just do it. There is no such thing as TOO big. Think BIG and take BIG risks, you'll get BIG profits.Trump started out with a THOUSAND units in Ohio. Yeap… 1000 UNITS as his 1st investment.
Soooo, how many Big deals have you completed Speedy?
You can find deals better than this all day long on loopnet.com. You can pay asking price and beat this sh#t deal. I don’t know what the other posts are thinking, but you will lose on this deal.