Posted by kris on January 27, 1999 at 03:33:04:
This is an attachement to my first post on the 7unit apt.
I forgot to mention that I also have the option of building 2 more apts onto the 7unit thereby increasing my cashflow. Please send feedback. Thanks
think I found a great 7unit deal/ need advice. - Posted by Kris
Posted by Kris on January 27, 1999 at 03:17:18:
I just came across a 7unit that the owners want to just get rid of. they are asking about 330k. It has a 188k assumable 1st @8.5% 30yr terms pmts are 1776/mo. total mo expenses are approx 1030/mo. the mo gross rent=approx 4230 but 2 of the rentals are vacant and if I rent them out to hud tenents i can rent them from 550 to 750/mo (the rents on all of them could possibly be raised $10-$20 more/mo/unit. These sellers are extremly motivated and want out because they’re elderly and don’t know how to manage/maintain the property. I want to see if I can structure a deal with them for 310k (depending on comps and appraisal) Any, repeat, ANY help on this deal will be appreciated. I don’t want to loose this one if I can help it. This one looks like a great n.m.d deal. Thanks a bunch.
kris
Re: think I found a great 7unit deal/ need advice. - Posted by phil fernandez
Posted by phil fernandez on January 27, 1999 at 06:46:39:
kris,
A couple of things of comment here. You mentioned that you want to offer $310,000 depending on comps and appraisals. If you don’t know the value at this point why do you want to offer this number. You first will have to know what the property is worth. If the sellers are as motivated as they say I would be offering alot less off of their asking price than $20,000. Again you will need to know value.
Also you mentioned about adding on two more apartments. It has been my experience that the cost of two new apartment units will be more than what you will generate from the additional income from them.
Good luck. If your sellers are truely motivated you may have something, but certainly do your homework on value first.