I am looking to purchase multi-units (4 and under) in the Central Maine area. I would like to put zero down and still receive cash flow. I have run the numbers many times on many different properties. I can’t seem to find any that will actually generate a steady cash flow on a monthly basis. Am I doing something wrong or am I just not finding a good deal? An example would be the following:
List Price: $229,900
Monthly rental income: $2700
Taxes: $2480
Water/Sewer: $1600
Insurance: $1460
Oil: $4232 (thanks to winter in New England!!)
I have been quoted with 0% down an interest rate on the 1st mortgage at 6.875% and the 2nd at 11.75%.
Any help on how to possibly get significant ($500 per month) positive cash flow, would be greatly appreciated. Oh yes…I have a credit score well over 720!!
Get the tenants to pay the oil and water and you will be a lot closer to getting a good deal. Is that possible in your area on a 4 plex? Here in Tx most all bills are tenant paid.
What about converting the property to condos and sell each to the tenants at $80K ea and even owner financing. Get a few grand down stroke and do the one next door next?
Your biggest problem it would seem is that you’re not looking for the “real deals.”
You’re looking at financing 100% of list price. Well, that’s all fine and good, as long as the list price is 70% or so of FMV (doubtful). Otherwise, you’re going backwards.
Let potential deals find you. Run an ad in the paper. Something like, “We buy apartment buildings. We pay cash and can close fast. If you need to sell, call us today!”
I just did a similar deal with zero down (not inc. closing costs)
$500 pos. cash flow, tennants pay utilities. Less surprises that way. I’m fairly certain owner needed to sell and I paid his full price.
I looked at hundreds on line and many in person. I aslo needed to purchase 60 miles away from primary.