Please HELP with deal

General Real Estate Investing
1

Hello everyone, I am new to REI, but I’ve learned a great deal from this site (very informative). I’m currently working on my business plan and have talked to several lenders (need to get my credit score up). I’ve looked at a number of houses and feel very comfortable with the property values in my target area. I am also working with a realtor who specializes in investment properties. I’ve been looking for single family homes to fix-up and rent (very good market for rentals - Section 8). Now, while doing my homework I came across the following deal:

Purchase Price: 325,000
Repairs Needed: None

Gross Rent: 6,250 per month
P&I : 1,250 (current mortgage) per month
Taxes: 292 per month
Insurance: 292 per month
Vacancy Allow: 300 (5% of gross income) per month

This deal was out of my price range (looking for single family homes under 80k to fix-up and rent, but it appears solid. I would hate to miss out on a good opportunity!

What do you think? Am I missing anything? If doable, how can the project be financed with little to no money in New Jersey?

Thanks in advance

Keith

2

Hello Keith, Is this a multifamily project?

3

Yes. The property has 6 rooms (sharing 2 bathrooms) , 2 (1)bdrms, 1(2)bdrm and another 1 bdrm that was converted to a beauty salon. It is also fully rented.

Keith

4

Hello keith, I know you said that your score is low but, where is it at? Would you be able to put moeny down toward this project?

5

chris, it’s in the low 600’s. How much money are we talking? I might be able to come up with some funds.

6

Hello Keith, They would need 10%. Now, if this project is too much for you, you could do one that is of a lower value say $100K or less.

7

thanks chris, I might be able to pull this off. Need a couple of days to try and put it together.

keith