Big City 3 Flat
I came across a deal for and all brick 3 unit new windows in a very up and coming area. Here is the deal: Out side of building is beautiful but inside of building needs work, but I am pulling 50 grand out of the building upfront. It should only cost me about 15 to 20 to fixup inside and I keep 30. The building price would be 250k. The are two 3bdrms and a garden apt. The two 3bdrms I could possible get 1000 to 1300 dollars for each and also I could get 450-500 for the garden. Does this deal make sense even with a hi mortgage. I think it does but I would like some more insight.
what is the amount being financed? is it 250k? so the price is 250k but you are getting 50k out of it so really you are bying it for 200k and using 20k to fix up and 30k to keep? if so it sounds like a very good deal, especialy since I have not found a legal way to get cash back at closing. but you will still need to run numbers, whats the vac rate, mgmt fee, owner expenses wtr..sewer..elec..gas..maint...?? once you run all that plus what your mortgage payment will be plus taxes and ins, then you will know if its a good deal. if it is postively cash flowing then it probably is. not to mention you have 30k in your pocket.