Is this a Good Deal! - Posted by Dennis
Posted by Dennis on March 12, 2002 at 16:02:18:
I have an opportunity to purchase an eight family unit. Here are the details…seller wants 199K. Terms are not identified. Property is in excellent condition and in a great area of town. Yealy income potential is $40,500, based on 450 x 8 - vacancy average over the last 5 years. Yearly expenses are $12,000, based on Taxes = 5k, Utilities = 4k Insurance = 1k, management = 2k.
I am going to offer 150k…25k down on a Land contract at 5yrs ballon, 360 month amorization. Is this offer too low or in the ball park. I want to submit this in the morning. Good Deal or Not!