Hello,

I live in Reading,pa I found another investor that wants to sell his 6 unit apartment building. He said it should appraise for 210,000 all he wants is 170,000. Here are the numbers for the building.

6-Units

Approx. 7,500 Sq.Ft.

##
Unit 1: $800

Unit 2: $525 - could be $575

Unit 3: $500 - could be $575

Unit 4: $375

Unit 5: $475

Unit 6: $280 - could be $375

Actual Total: $2,955 /mo.

Market Rate: $3,175 / mo.

NOTE: Property used to have a laundry, but once the machines broke, I did not want to deal with it. It used to bring in additional $60-80 /mo.

Expenses (annualized):

Taxes: around $3700

Insurance: around $1900

Main Electric: around $600

Trash: $1080

Water/Sewer: around $2640

Oil Heat: around $7000

The boiler is brand new. It was installed in September. Also, 1/2 of the roof is new rubber as well. Since I bought the place about 2 years ago, I’ve invested close to $20K in repairs and upgrades.

The seller advised he would give upto 10,000 towards closing cost.

All the seller wants is to walk away from the table with no less then 170,000 and advised he would not hold a note.

My cousin is giving my the 20% down. and he becomes a partner.

I am doing a 2,000 earnest deposit. after I get the inspection and appraisal. then he wants to sign a contract but he advised he would not sign and contract that has any contengencies

If I do the calculations right with my interest rate being 9 % on a 137,000 the property would have a dsc ratio of .75 AND A CAP RATE OF .29

I have a spread sheet I can email someone to please help me out

Thanks in advance for your help