I didn’t really know where to post this, either in the landlording forum (which I did post it in) or the flipping forum.
Okay, normally I flip houses but I am seriously comtemplating keeping this property I came across.
Home owner is willing to let go of this Triplex for 160 000 mortgage he has on it + 10 000 he put into it, making it about 170 000.
The places are all rented out at 700, 750, 760 a month making it 2210 rental income per month. The units are so far looks like there are almost no renovations to be made but that is further to more inspection.
I figured say I put 10-20 000$ down on this property and get private financing from private lender at around 7-8% interest, it would cost me about 900$ a month in payments plus about 500 in taxes and insurance. I can even get a nothing down all cash purchase at that interest rate and still make a positive cashflow without putting money down at all.
So it comes down to about say 1500 a month in payments, 2200 a month in rental income.
If I go the nothing down route the payments will be bumped to 1700-1800 a month.
The value of this property is about 220 000 on the low end comps and 250 000 on the high end comps.
I can easily flip this for about 30 000 dollars profit to an investor that would for sure buy it at 200 000.
Not quite sure what is the better scenario, ~~500$ a month positive cashflow right off the bat or 30 000$ flip.
I own zero rental properties btw, I have just been flipping properties.
do a further inspection of the property and see if there’s nothing drastic that needs to be done…
how long the tenants have been there and what they’re like…(further deducing how long they’ll be susceptible to staying there)…
Get a 60 day option on it and try to sell it for $200k+, if you sell it good…if not close on it yourself. Walking away with $30k would be better IMO because you’ll have some cash come tagsale time next year when prices are even lower, worst case if you do take it down you still have a cashflowing rental.
The Canadian market takes a hit just like the American market but I don’t know how much of a hit it will take compared to the American market, all depends I guess on how badly wall street get’s screwed in the butt.
The Montreal market has been hot for the past 7 years… But things can drastically change if things drastically change at wall street. Should all this doom and glooming about the American market change my idea about purchasing good rental property right now?
is there a possibility to maybe do a short sale ? then sell or buy
it. this would really increase the profit & equity of this property.
just an idea that popped in my head.