I Think I Have Found A Great Deal
I am wondering if I can get some feed back on a property that I am going to put an offer on.
The property is not on the market yet, but I know the sellers agent and am getting a jump on it.
It is a 2 unit retail and 3 unit residential building.
Here are the numbers:
Asking 299,000
Rental income: 48,000 (all rented)
Expenses: 9360 (not including mortgage)
I think it works out to be a 13.5% cap rate
He will also give me a mortgage at prime with only $25,000 down.
Building is old, but in good shape. The location is not the best, but the tenants are good.
What do you guys think?
The property is not on the market yet, but I know the sellers agent and am getting a jump on it.
It is a 2 unit retail and 3 unit residential building.
Here are the numbers:
Asking 299,000
Rental income: 48,000 (all rented)
Expenses: 9360 (not including mortgage)
I think it works out to be a 13.5% cap rate
He will also give me a mortgage at prime with only $25,000 down.
Building is old, but in good shape. The location is not the best, but the tenants are good.
What do you guys think?
Comments(0)
Also, it will cashflow about $1700 a month. With only $25,000 down, that seems like a pretty amazing return to me.
You may want to consider the age. Older properties will have alot of maintenance. I am a licensed real estate broker with several rentals. I recently sold several quads because of the constant maintenance. These buildings were 40 years old and had repairs daily. Be sure to account for alot of future repairs.
is this property in the Bronx?
I say a similar sounding property be sold there.
The 3 residential units have just been re-done and are quite nice. I think the amount of upkeep will be minimal..... fingers crossed
Good points commercialking, thanks