Think I have a good deal, want 2nd opinion - Posted by Doug
Posted by Doug on March 26, 2000 at 17:43:13:
Here are the particulars:
6-unit apt. building in small town.
Appraised late '98 for $90,000.
Asking price: $75,000
Rents: Two 2BR @ $375
Four 1BR @ $275
Total rent when fully rented: $1850
Property taxes: $2800/yr.
Owner pays water, sewer and trash. $110/mo. average.
Owner’s husband passed away and she just wants to get rid of it. She showed the building to me today and it is in good shape, could use some cosmetic work (Doors painted, new shutters etc.) It is not fully rented now but she hasn’t tried to get renters. Rental history is good. All apts. have washer/dryer and central air. Tenants pay utilities. I can’t really see how this couldn’t be a good deal but I wanted some more input. Also, I own a 4-unit building that appraised at the same time for 98k and I currently owe around 70k on it. Do I actually have 28k equity? How does the bank look at that and what is the best way to approach the bank about this new building? Thank you in advance for any help.