Posted by JPiper on October 26, 2000 at 14:22:21:
Based on your numbers, this deal would break even if you financed about $340K. Where’s the deal? That’s about a 30% discount off the list price. Personally I wouldn’t spend another second thinking about this deal. I’d go look for a motivated seller.
JPiper
$495000 for 5 duplexes? (long post 
- Posted by Jonathan Light
Posted by Jonathan Light on October 26, 2000 at 04:04:26:
Here’s a rundown.
5 duplexes total 10 rental units:
Summerville, SC
Good economy. growth, and schools, low crime, established neighborhood
3 Year Average Annual Income
100%
Yearly
$55,000
Monthly
$4,583.33
Per Unit Per Year
$5,500
Per Unit Per Month
$458
Less Operating Costs
30%
Yearly
$16,500.00
Monthly
$1,375.00
Per Unit Per Year
$1,650.00
Per Unit Per Month
$137.50
Less Downtime, Unforseen Cost, or Vacancy
10%
Yearly
$5,500.00
Monthly
$458.33
Per Unit Per Year
$550.00
Per Unit Per Month
$45.83
Net Operating Income
60%
Yearly
$33,000.00
Monthly
$2,750.00
Per Unit Per Year
$3,300.00
Per Unit Per Month
$275.00
I have not yet contacted the seller. He is asking $495,000 for this property. How much of a discount can you ask for on a property like this without getting
called silly names? If you were to do this deal would you need a company or can an individual (or two) do it?
I have some major roadblocks to doing this. No job, no credit (but no bad credit either), no funds (i'm drawing unemployment from an IT layoff),
no credit cards, just a checking account (with almost nothing in it).
I have hotel experience, and my wife has hotel management experience, and we would like to take over the property, improve it, & live in it while
working on other deals and at part time jobs. We are willing to work hard and are not afraid of reasonable risk. Neither of us have put together
a business plan before but with a little direction it wouldn't be impossible. Neither one of us wants to go back to trading our hours at work for
a few dimes left when the bills are paid. With two children (one is three, the other seven months) we need a chance at something more!
To make it worse, this would be our first deal. So it goes without saying that we are in well over our heads. The main problem for us is not finding a
good deal, it's getting it financed. As some may know Charleston SC and its surrounding areas are doing very well right now.
Just about the only things we DO have is a good contractor friend with almost 30 years experience, and a small amount of cash to get my real estate license.
I have been reading this post for days now and I must say this is a must read for anyone thinking about real estate. Ed, if you can help us out we'll buy
one of every course you sell AND give you a living testimonial! We can relocate to anywhere in Oregon or the Tri-County SC area to make a deal happen.
We are desperately determined motivated buyers that will do almost anything (except lose money:) to get financed and make a deal like this happen.
To be perfectly honest we would be more interested in something with more units and greater potential. We believe because of our situation that all of
this is just not within our reach. We looked at several multi-million dollar developments and thought to ourselves "Who in the world would lend us
$15 million to get into a property like that, and why? Do they really expect me to find 20% of 15 million to put down on it!?!".
I think everyone who reads this list either knows where we are coming from, or can sympathize with having been there.
If anyone has a property they would like a live in manager couple for, we are right here and can relocate for a good
deal in 30 days notice.
We're going to see if this is real or just a bunch of hype. Good luck to all of you, and thanks a million!