OfflineI just looked at a 14unit brownstone, it has 9-1bd, 4-eff and 1-2bdrm. They are asking 829k, the mtg company SAYS that they would be willing to let someone assume the mtg. mtg is 665k or so. It cashflows about 2400/month including mtg/util/tax/ins. New electrical and plumbing. Has a renter that has lived there since 79! and 2 more from the late 90's. Really charming, neighborhood is okay, can be patchy but close to major academy, so they get alot of students. Roof is 15yrs old, may need replacing soon, but currently doesn't leak. They bought it for 730k 3years ago. Just wondering what others think of these numbers, looking for advice from those in the know. What kind of resale does big property like this have. If I want to buy and hold for say 3-5years, what are the chances that I'll be able to sell for profit?
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Sounds like an interesting building. Did "assuming the mortgage" sound like the seller would take what they OWE on the place ($665K)? Also, did you see paperwork showing that they property cash-flowed at $2400mo, or did they just tell you that so far? Of course, that could vary, too, with the terms of the financing. I believe a LOT of due diligence would go into researching a place like this. Might be a very educational (and maybe profitable) experience.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
The cash flow appears to be low on a mortgage of 665k. I currently have a 12 unit building for only 300k under contract and it brings in $6K a month cash flow. However, your deal could be a great deal if they are going to allow you to assume the mortgage such as with a "subject to."
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
The 665k is what is owed on the mortgage, the owner want 829k for the prop so that is an additional 160k to them. I think the price is a little high, and the mortgage is stiff at 4200 a month. I think there is a little room to raise the rents though which could help. I agree that this could be educational, It makes my palms sweat thinking about managing 14 units and having big debt like that though. But I like the fact that there is no major rehab, and instant cash flow. It may be too big though, I am going to keep gathering info and learning.
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I'd be curious to see what the rents are on the units. Like you said, it might not be a great deal, and a little big, but gathering info and learning is always good. Helps you know what a great deal looks like, after all. Have fun!
Jason, holy SMOKES! I would like to hear more about the one you've got locked up! Avg. profit of $500mo per unit! - That's some pretty nice cash-flow!! What are your plans for that one?
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Rina, here is a copy of what she sent me SF is square foot. The guy who has been there since 79 is a property manager of sortof. He is not handy but talks people of the ledge at 3am so to speak so actually he gets 400 deducted from his rent.
Suite # SF Monthly Start Date
Rent
BW 670 795 8/1/2008
BE 835 750 6/1/2005
1 650 795 11/1/2008
2 650 645 6/1/2005
3 510 545 8/1/1993
4 510 595 6/1/2009
5 650 695 9/1/2006
6 650 695 6/1/2008
7 650 645 2/1/1979
8 650 695 2/1/2009
9 510 595 8/1/2005
10 510 595 8/1/2008
11 650 695 6/1/2007
12 650 645 2/1/1998
9385
I agree with Rina Jason, WOW let's hear more about that!!!
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...