help with potential deal(long post) - Posted by tom v IL

Posted by Sean on May 06, 1999 at 11:05:39:

First of all your net operating income is more like $43,500. This will give you an 8.8 percent capitalization rate. This is excellent for my area, but your area may be different.

Have the seller create a second mortgage which will be sold to create the down payment money he’ll need. You will give him a wraparound mortgage or an all inclusive trust deed in the amount of the purchase price. Aim to get payments less than $4,000 a month and an interest rate less than 8 percent and you should do fine on this deal.

help with potential deal(long post) - Posted by tom v IL

Posted by tom v IL on May 05, 1999 at 21:18:33:

I could use some in put on a potential deal and how I might be able to structure it, if possible no-money down or what should I be able to offer for it.Here it goes, it is a 12-unit all 4-room,1 bed asking $495k.Fmv is around the asking
price,2-apartments rent for $550 a month,9-rent for $540 month,1-rents month-to-month-$480 also a coin operated washer+dryer$100 month.The gross income a month is $6600,
the annual gross income is $79,200k and the net operating
income is approx. is $110k.The expenses are taxes(1997)
$19.893,heat-$5,500, elect.-$750,water-$2,220,garbage-$1248,
ins.-$1350.It has a assumable mort. in present balance of
$283k at 7% adjustable,1% fee to lender,30yr due 8-1-2024.
I would appreciate if anybody could give any suggestions
on how I should preceed with these or is these a deal not worth making
an offer.