Posted by Matthew on April 09, 2008 at 06:12:41:
Ok - first there is no 100% commercial loans for this, so if you don’t
haver 30%-35% just forget it. The numbers are weak when you have a
moretgage on this from looking at it
Gross Income $ 94,000
50% expenses $47,000
debt service $39,275 ( 297,500 /70% @11%)
net income $7,725 / 643.75 amonth
Analyze small hotel deal - Posted by Cat in Austin
Posted by Cat in Austin on April 08, 2008 at 23:11:33:
I’ve only done SFHs, but I’m looking at my first commercial property.
Here are the details that I know.
Asking: $425,000
17 rooms (could be 20 if 1 bdrm apt. and office were converted back to rental rooms)
Gross REPORTED income for 2006 was $94K (she says it’ll be more 2007)
Rents $110+/wk (most tenants are long stay–several weeks to several months. A couple are permanent.)
No deferred maint. I would assume 35-45% expenses, since it is an older building.
Vacancy less than 5% (they say and seems to be true so far)
No financing available from current owners. They have a 1st to pay off and won’t carry 2nd (older couple). We’d need 100% financing.
Town is small and funky, but growing like crazy (just outside Austin).
How do I analyze this?
Thanks for any input.
Re: Analyze small hotel deal - Posted by brandoncbsre
Posted by brandoncbsre on April 09, 2008 at 19:10:45:
I agree with Matthew that there are no 100% commercial loans. But the rate he assumes is higher than I am being qouted these days. I can get 7.5% at 75% LTV right now. Go to some small local banks and see what they have to offer.