Is This A Good Deal ?

It could be. It would depend on how much equity your investor would want. He may be comfy with those numbers or not. He would also want to know if the prop cash flows. but it sounds like something very doable. Of course the cheaper you can get it the more appealng your deal will. As long as your invesotr is looking for these types of deals it should work.

What are your plans for the prop?
Assign-Wholsale?
Buy and Hold?

From what I see, there is not a bunch of wiggle room for your buyer especially if he needs to do repairs. Buy and hold might work but you need to give more info.
Property Taxes
Insurance
EXACT RENT ROLES, not a ball park
Any other liens against the prop

Start with that......Jan

well like kingjuss said It all depends on what your investor is trying to do or is willing to do.
75,000$'s is roughly 83.3 cents on the dollar if the property is @90,000$'s
those figures leave very little room for your profits and wiggle room unless you can turn around and get your investor to pay the original $90,000. It never hurts to try and offer lower to see if you can get them to come down even more than 75k.
55% of 90 000 = 49 500,
65% of 90 000 = 58 500,
75% of 90 000 = 67 500 and that is about as high as I would go, so that you can still have room to work with your investor and find a price that they feel is a "Can't pass up" situation.

one thing that I've heard and read is never fall in love with 1 single property, Rather fall in love with the profits that it presents for you.
Another thing to think about if you do have a good investor in hand is to get a "CLEAR" criteria of what it is they want out of the deals you will be presenting them with. how much do they want to be able to make on them if they were to turn around and resale the property. How much below FMV are they looking to shoot for that kind of stuff. The more clearly you understand what it is that they want the easier it will be to search for it. Another thing to think about in your hunts is the 25 to 1 ratio if you put out 25 low low offers on "recently reduced", "as is", "investor special" etc. types of properties then you should find that you will get one out of those 25 to accept, but you have to make sure you are only doing this on properties that are already showing that they are becoming desperate with language like I gave examples for above.

I hope this helps put things into perspective for you and GOOD LUCK in all of your endeavors
your friend Jarrad:)

Hey Lawrence,

This is definitely not a deal that I would recommend wholesaling as your first deal. Not that it can't be done, but you want to make sure you have a buyer who is looking for commercial space along with Multi-family properties. It would definitely take a certain kind of investor to buy something like this. The cash flow sounds like it's there but that all depends on how much work the place needs and what the exact rents are.

If you are not going to wholesale it and are going to buy it yourself, then just do more research. Figure out how much work it needs, what the exact rents are, when all the leases are up, etc. Make sure the property will appraise at a number that will allow you to refinance and pull your money back out.

When wholesaling I never mess with deals that mix commercial and residential together unless I have a buyer specifically asking for something like that. These properties are much harder to sell, and I never go after anything that makes my job more difficult! =)

Good luck and keep looking for more deals!

Larry F
The Flip Kid

Thanks for that confirmation I havn't even done a first deal yet!!! And I would also call a "no go" on this one. Also, price is way too high for profit.