OfflineNEW OFFER - different owner & town
7 units may be able to get it for $175,000. All currently rented gross rents $4150. other income from laundry & garages = $6600 TOTAL GROSS RECEIPTS = $48100 owners pays gas & water = 7000/yr, taxes @ 1740/yr, ins @ 1740/yr, this is in MT largest city. Building needs cosmetic TLC on outside, all apts are good as is except for one - it will need quite a lot of cleanup/repair. I fount 70% of purchase @ 8.5% and $65000(bal & fix-up)@ 4%. We will manage it our self and do most of the fix up. Roof, furnace good, not sure about water heaters.
I think this is too lean as well right?
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Monthly rents = $4150?
If so, $49,800 gross rent receipts/yr
plus $6,600 from garages/laundry
Gross scheduled income of $56,400
Are both loans 30 yrs?
How much does the seller owe?
Will seller carry any?
When you say the furnace is good, what type of heating?
Why are they selling?
70% loan is for 30 yrs the 65000 for 5 yrs. Last warranty deed issued by county was in 2006. I do not know what they owe (how do I find out?) and I don't' know why they are selling.
Heating is hot water/gas. I do not know if seller will carry.
thank you
Hi Charlene...you can ask the seller how much they owe and why they are selling. This might give you an indication if they might carry or not. While assumable loans are unheard of in the single family market, many times commercial loans are assumable. When you said the furnace was in good shape, did you mean the heating units in each apartment, or is there one central unit for the whole building. How old is the building? Remember, if you can't get the financing to make the numbers work for you, you can still wholesale it to a cash buyer where the numbers will work.
If gross scheduled income is $48,100 then conservatively speaking the NOI is $28,000/year. If you get it at $175,000 your cap rate will be over 16%. This is unheard of, and it does not matter what part of the country this is in, investment principles apply universally!
If investors get wind of this be certain that they'll be flocking into town to correct the market in a very short period of time.
P.S. - Everything else is immaterial, irrelevant, and unnecessary.