Any thoughts on this property???
Possible 4/5 family. 1 unit does not have heat source, realtor says that b/c of this financing could possibly be for 4 family and not commercial….any thoughts on the veracity of this statement? How should I position it with the lender?
Assuming 4 family works out the numbers would look like this?
Purchase price - $270,000
With 10% down - $27,000
Finance (7.75% estimate) - $243,000
PITI – appx - $1800 per month
(seller will credit $4000 in closing costs)
Of the 4 units – 2 are currently rented:
Unit 1 – 2/1 (not rented) =$600
Unit 2 – 4/1 (rented) = $900
Unit 3 – 4/1/ (not rented) = $850/$900
Unit 4 – 3/1 (rented) = $800
Estimated Gross Rent = $3100
If section 8 tenants = $3962
Expenses = $7782 (ins $1500, taxes $2900, mgmt fee $2232, main $250, electric $300, water/sewer $600).
Vacancy loss factor = $3100
NOI = $26,318
Cash flow after interst expense, taxes & expenses = $5713
Pro’s of the property –
Units are in excellent condition (best I have seen) everything is new….the units are huge.
The units are all deleaded.
The 5th unit needs a heating source, stove and refridge and would then be worth an additional $600 a month.
All the utilities are separate, the roof is new, the house is vinyl sided, the windows are new, the stairs and porches are new.
Con’s of the property –
THERE is no parking and no way to add a parking lot. It is on a main road that does allow parking, but not in the winter. There is a bus system but there is not a close bus stop. The property has been on the market for a while…which makes me a little nervous. It is price well for the area. Worried about resale…because of the parking situation.
Any thoughts would be welcome and appreciated…