Creative 6 Plex?
O.K.
Here is my latest deal.
6 plex in Ogden UT fully rented and gross rents are about $2160 a month.
2K in deferred mainenance.
Purchase price is $110K (in default) appraisal comes in at 170K.
Here is where I am turning over a few ideas.
Do I :
1. pay cash for the property and pocket +-$1500 and hold for a year then resell?
2. Bring in an investor for the 110K and and equity split with me managing the property, hold for another year and resell..?
3. Sell a partial ( I am not real familiar with that)?
Any other ideas?
I think I can add coin-op and storage and increase the property value by another 20-30K.
[addsig]
My choice would be to buy for cash keep the property and refi my cash (possibly more than you have in it) and look for the next deal. Unless you have outrageous expenses this should give you good positive cash flow with zero net down. It looks like you found a good one.
Regards,
Ed
sounds like good advice, I had just thought of avoiding laying out any of my own cash on it, I am always working on several deals and want to remain liquid. If I cash out too many of these deals then I have to use private money to fund...
[addsig]
If you are finding many of these, your idea of splitting equity may make you more money. If you can do more than one of these with the same investor, then you might consider having each of you own a property rather than co-ownership. This reflects my personal aversion to most partnership arrangements.
good partnerships are like marriages, they start out with selection and then take work. I have had a great business partnership for 5 years
Why not traditional financing? I haven't had to go to hard money yet but splitting that much equity is a big hit for financing I would think.
On units with more than 4 you are stuck with commercial financing. HIgher rates generally and shorter repayment terms.
[addsig]
Duh, thanks StockPro, missed it completely!
question about cash out / refi.
when you do that you don't have to go with commercial financing?