What Do You Think Of This Deal And How To Structure It In Best Way
i own a 7 unit currently as an investment prop and looking to
buy a 15 unit with 1031 exchange ,but the in the 15 unit about 10 residential need rehab estmitaed costs 100k and 5 commercial bring in 60k per year, the unit is priced at 1million
and then i will pay ~ 100k in rehab .
its in a hot area and i was thinking of asking for 850k and then spend 100k on rehab.
total Gross inc would be 160k after rehab
i dont have any experience with rehab financing and doing it was just thinking of using contractors .
1. what do u think about the offer price?
2. is rehab too difficult estimating 100k expenses for 2-3 mnths timeline.
3. how can i structure this deal with minimal risk, is lease option a good idea.
i really need ur advice on this one its gonna be a big investment for me
let me know.....
oh buy the way NOI is 11,622
If monthly income is 1500 a month, 120k would be doable in my book. Unless you know that those rents are low for the area or something.
[addsig]
oh buy the way NOI is 11,622
thanks for the reply.
Tommy
Yes, if you can get it at that price with concessions for those repairs, a good deal. Unfortunatly I could see it being pretty tough to get the seller to drop $25-$30k plus throw in $5k-$10k in concessions...
Also you say 100% on owner occupied @ 7%... do you plan on living in one half? If not, owner occupied is not possible. I would think your operating expenses of $5500 would be quite steep. If that is the case, $5500+PITI of about $13,200/yr = $18,700. That equals a negative cash flow.
Quote:
On 2005-01-31 15:59, SRIINVESTORS wrote:
thanks for the reply.
Tommy
you are correct. that was a misprint on my part. I can get 100% non owner occupied. I would not live in the unit. according to the section 8 numbers in our area, for a three bedroom, the rents go to about 900 per unit. we still screen hard through a third party company, whether they are section 8 or not. I would probably buy if i can get some good concessions for the repairs. I really do think anybody would go 20 to 30k less plus repair consessions. but we will see where it shakes out at and run the numbers again.
thank you all for the replies. and more is always welcome
Tommy