Posted by JamesL (Ohio) on February 09, 2002 at 24:58:33:
“I have about $40k to put down on the property so I figure my PITI will be $1600 ($110k @ 8% for 15 years)”
You said you’re putting $40k down, but only financing $110k…aren’t they asking $210?
Does this one sound solid?? - Posted by Kevin
Posted by Kevin on February 08, 2002 at 14:32:43:
Here is a deal I am looking at:
A commercial property that is 1680 square feet. (840 on main level and 840 upstairs.)
The asking price is $210,000 (down from original asking price of $250,000). The taxes are $3500/yr. I received a copy of the lease and the lease payment is $2200/mo. The occupant who is a real estate agent for Century 21, is locked in the lease until 1/2005. I have about $40k to put down on the property so I figure my PITI will be $1600 ($110k @ 8% for 15 years)
The average lease rate for office buildings in the area is between $10 to $14/Sq.ft
NOI calculation:
$26520-$600-$1320-$528-$3475=$20597 NOI,
at a 10% CAP rate = $205970 property value
My goal for this and other properties I will be acquiring is to hold them for the cash flow and tax benefit.
Does this look like a good deal to you all??
Thanks for your time.