Potential Property - Posted by Michael NJ

Posted by Bill K. (AZ) on November 29, 1999 at 15:30:54:


Contact a Realtor who can give you comps for the neighborhood. That should give you a good idea of the value for the property. In addition, ask the Realtor to give you their professional opinion on the neighborhood. If the area is declining, then you need to make sure, should you decide to proceed with this purchase, that you will have a “significant” positive cash flow from this property. You may have large maintenance expenses for such a property. I would figure 40-50% of gross income. Finally, see if the current owner will provide proof of the vacancy rates and expenses incurred for the past few years.

Perform your “due diligence” as you proceed, and you’ll feel comfortable about making the right decision.

You might get more responses by posting this question on “Newsgroup”.

I hope this helps.

Bill K. (AZ)

Potential Property - Posted by Michael NJ

Posted by Michael NJ on November 29, 1999 at 14:16:51:

I have located a property in a somewhat mediocre part of my hometown. It’s a 6 family and after doing a financial analysis, the property looks like it would hold it’s own and give myself a positive cash flow. The seller has indicated that she would entertain a “no money down, possible seller financing offer”. The only problem I have is buying the property and the neighborhood declining in the future, although the owner claims that it has rented comfortably ever since she’s owned it(for about 20-25 years). Should I go ahead with the deal or investigate the deal a little further? Any help would be appreciated.