Posted by Jim Rayner on June 08, 1999 at 16:27:40:
David,
You have not provided enough information for a well informed opinion but I will take a shot at it Working the deal backwards from the income of 800 per month and allowing for a very minimal expense allowance of 30%( assuming separate tenant paid utilities) and a 5 percent allowance for vacancy factor , and figuring 90%ltv @ 8.625 30/30 financing the maximum I would consider paying is 55K. Anything higher just would not be worth my time and effort.
Now the problem is : is the property worth 55K?
Is there any deferred maintenance
What are the real expenses
What is the real vacancy factor
What is the real market rent values
What are comparable properties selling for
Do you really want to be a landlord
Need advice on duplex offer - Posted by David
Posted by David on June 07, 1999 at 13:31:54:
The building is aluminum siding structure. It appraised at around 74K 6 months ago. One side has an older lady that has rented for 10 years in the same unit. Her rent is 325/month. The fair market rent is $450. Her side is in immaculate condition. Platic on carpet never late on rent. The other side has just been recently renovated for the new renters that have been there a short while. It rents for $450/month. The asking price is $73K. They told a friend of mine that they would be willing to take a 2nd for 5K maybe 6K. My friend also told me of a loan officer who would be flexible enough to allow a 90% LTV loan on the building. It would pay for it self as is on a 15 year with nothing left over monthly initially. They are waiting on me before the list it with a broker that will charge 6%. Any ideas on what I should offer? I just hate to give asking price. I would like to get cash back at closing as I have access to large credit line. Any suggestions?