Would You Purchase This Property
I’d thinking of purchasing this property, which is located in North Alabama. Here are the details and financials:
- 2 buildings with 4 units in each building (8 units Total)
- Built in 1979
- 4 units rented( $400 + $465 + $400 + $375=
$1680/mo.)
- 4 units vacant and in the process of being renovated.
Owner expects those to rent for $435/mo
- each bldg is approx 3400 Sq ft
- Asking price is $167,500 X 2=$335,000
Annual Income:
- Gross Rents $19680
Annual Expenses:
- Management fee $3648(based on 5% vacancy rate)
- Prop Tax $2680
- Insurance $2222
- Utilities $2880
- Lawn Service $2160
- Cable TV $1386
- Garbage $888
Total Expenses $15864
NOI $3816
I do not have an appraisal but the listing agent used comps from sales of similar local properties to determine list price. I plan to put down 10 to 15 percent. I would appreciate your comments/analysis on this property’s numbers. If I can get the other units rented does it make sense to purchase?
Thanks
kevin
- 2 buildings with 4 units in each building (8 units Total)
- Built in 1979
- 4 units rented( $400 + $465 + $400 + $375=
$1680/mo.)
- 4 units vacant and in the process of being renovated.
Owner expects those to rent for $435/mo
- each bldg is approx 3400 Sq ft
- Asking price is $167,500 X 2=$335,000
Annual Income:
- Gross Rents $19680
Annual Expenses:
- Management fee $3648(based on 5% vacancy rate)
- Prop Tax $2680
- Insurance $2222
- Utilities $2880
- Lawn Service $2160
- Cable TV $1386
- Garbage $888
Total Expenses $15864
NOI $3816
I do not have an appraisal but the listing agent used comps from sales of similar local properties to determine list price. I plan to put down 10 to 15 percent. I would appreciate your comments/analysis on this property’s numbers. If I can get the other units rented does it make sense to purchase?
Thanks
kevin
Comments(0)
if your looking for long term financing an insurance company is usually the way to go...getting non-owner financing with a high LTV is hard. Generally, your going to have to come up with the money.
Do you have 401ks? take a loan from your 401k for the downpayment if you need it...just pay it back quickly
well if you can get him to seller finance part or all of the deal , it that would be a start . now,is there any other tenants in the building besides your company ? also we can maybe able to finance at a better rate. send me the package and me and my associates will take a look i will do whatever i can to help you 7.25% - 7.75% . well on your next deal that you are aquiring for a client and the broker is structuing it as no commission split that because the deal is so sweet that he needs no help selling . so in order for you to get paid you must be creative and i am going to tell you an old secret so keep your mouth shut and we will be able to use it for many many years to come . you may even get a pat on the back when you tell your boss (quite possible to give you a raise if he has never heard of doing this trick before . so if your the buyer broker or consultant or friend well anyways do whatever you can when filiing out paperwork to have the deal closed on th2nd day of a new month & have rent credited to the the buyers broker at close of escrow and there you have it if you have strong will of desire than not one thing canstop ya . hope the very best to you and your people .if you have anymore questions please email me anytime and when i get a chance to check the messages i will return your call . you have to remember i am here to spread the knowledge and will power to create a better future for our fellow commercial investors/ around the world . thanks for making my day i love answering questions for people cause i know how hard it is to get info on commercial industry your frinend and commerical consultant chris wilson .
[ Edited by joel on Date 10/18/2006 ]
I know that Starbucks owns all of their stores and does not franchise them, so you could contact corporate headquarters for them.
As for the others, I think most franchises have a referral service at the home office so that if you have a good location, they could recommend that location to one of their new franchisees that are looking for a good place.
[addsig]