Multi-Unit Investing

I am in search of some help on a creative method to finance a duplex in Phoenix. They are asking $195,000, $650 per unit, AGI = $15,600 with expenses of $1700. The property is relatively new…built in 2001 and in a relatively nice area. I wish of course to get it for the lowest reasonable (wholesale) price as possible and hopefully get some cash back at the closing. I believe that the owner is willing to deal (just how motivated remains to be seen). I just have to know how to structure the offer so that both of us come away with something beneficial. Any help would be greatly appreciated. Thanks in advance.

are you looking to flip this prop or are you going to buy and hold as a rental?

I am looking to hold for about 1 year and then turn it over.

Holding doesnt seem to be a great idea with the numbers you give, Possibly negative cashflow… have you checked comps? what are they going for? are you speculating the home prices will rise in the next year? That can be very dangerous financially… If you can get the property far enough under market value, it may be worth the trouble other wise I would move on to the next…

Howdy Madelf:

You need to know the amount of money the seller owes on the property. If they have a lot of equity they may be willing to help finance some of the sales price.

I bought a house once for $50,000 that the owner owed nothing on. He had to have $25,000 cash to pay the IRS within weeks. I got a quick hard money loan for $35,000 and the seller carried back $25,000 and I put $10,000 in my pocket at closing.

The seller has to be really motivated for a deal like this to happen and have the equity but they are out there.

It is like Johnnyonthespot said you need to buy it right too as cash flow can be important. The above house was actually worth $60,000 and I rented it for enough to cover the debt payments.

Have you concidered utilizing government funds i.e. grants and loans? The loans can be as low as 1% but not over 5.5%. The grants will never have to be repaid. I have information and program #'s if you would like. Ted Simpson

Hey Ted,

I would like to find out about some of those grant programs… appreciate any info you can give me… Thanks


It look like you might be spreading yourself out ot thin on this deal. If you cannot get the seller to a lower offer I would pass on it. I don not see how you could cash flow on this deal without great low low interest financing.
Good luck

Thanks for all the good advice and suggestions. I spoke with a friend of mine…more of a veteran investor than I and I have come to realize that maybe this isn’t the best deal for me. I will keep searching. Can anyone suggest a good program or software for evaluating a real estate deal? Thanks again for all the help. :smiley:

There are several companies that have real estate investment software, I would do one of two things

1# do a google search.
2# check software programs on this site.

Good luck