10 Unit Complex - Help!
Found a 10 unit for sale in the city near downtown.
asking: 450,000
appraisal: 530,000
all 10 units occupied for total rents of: $5,350
I am brand new to multi-family deals - what other questions should I be asking the owner?
Owner is willing to accept something creative - what should I offer?
First of all - you should ensure that the appraisal is a real appraisal. If he just told you it appraised for that much, ask to see it and go through it page by page...
What kind of fix-up costs are needed? Etc. Ask the same questions you would ask a homeowner... Ask how well the tenants pay - on time, etc.
As for creativeness - you can do just about anything the same as if it were a single family... Sub-To, Lease Option, Owner Financing, Outright Buy it, Whatever...
Good Luck!
[addsig]
Hi spinwilly,
How is in Austin? What is the trend? Does the rental bld. prices going up or are still flat. I heard TX university is to "blame" for the growing population of renters in your town; is that right?
JeemB
why does he want to sell after two yrs.........km
seller is selling becuase he wants to get into other projects.
he owns 6 other multi-family complexes.
he has a person doing all the management.
all 10 units were recently fully renovated - so the place should look new.
I was thinking of offering him 400k.
20k down, 380k 1st at 5% INT only baloon due in 10 yrs.
is that 20k down with 380 @5% {amortized over 30 or 10 yrs} with a 10 year ballon.......km
good point.
Yeah, I was thinking 95% 1st of 380k at 5% amortized over 30 yrs.
I highly doubt he is going to accept only 5% down - but I will make an offer nonetheless and see what happens!
I will also ask him to nail down reasons for selling and more details on the building itself