Request help with analysing a possible deal

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Request help with analysing a possible deal

Account Closed
Bowie, MD · Member since 2018 · 7 posts · 1 vote

I have one small multifamily and a condo. I bought the multi-family 14 years ago and turned the condo into a rental 9 months ago. I am excited to be on Bigger Pockets and am binge listening to the podcasts from 2013 on. I am looking at some affordable properties (all three are small multi-family) and wonder if I am asking my realtor the right initial questions. These are out of state properties in a location where I will be eventually moving to.

1. What is the tax appraised value

2. Is there a possibility of seller financing? If so, what is needed down and what is the interest rate?

3. What are the annual maintenance costs? (Average for last 3 years)

4. How long have the tenants been there and what is the lease structure of the current tenants? Is it month to month or 6months or a year and when does the lease end?

List Price: $48,900
List Price: $42,500
List Price: $30,200

Also, if all three cash flow based on the BiggerPockets calculator, how can I structure a deal to buy all three with minimal cash out of pocket. I really want seller financing, but is that the best way to go?

Thank you,

Darrell

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    @Account Closed for the most part seller financing will not be available unless it is shown in the public listing.  Tax appraised value generally doesn't tell you much about actual value especially depending on the state and is usually public information.  Maintenance costs would only be available if the seller kept good records, which sometimes they do not.  The lease question is a good thing to ask and is something that the seller will know.  If they are not all 3 from the same seller you will have three separate deals, as mentioned before unless it is listed in the public remarks or the property has been for sale for a very extended period of time seller financing is unlikely, and many times if the seller is not seeking seller financing, you can make an offer for interest rate, terms etc.

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  • Account Closed
    OP
    Bowie, MD · Member since 2018 · 7 posts · 1 vote
    8y

    @Arron Klatt Thank you so much. I want to run the deal through the BiggerPockets calulator, but thanks for mentioning the time on the market. In my excitement, I forgot that part and will look that up.

    Darrell

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  • Account Closed
    OP
    Bowie, MD · Member since 2018 · 7 posts · 1 vote
    8y

    @Aaron K. thank you again for your advice. I am closing on my first deal in years. I followed your advice and narrowed it down to one property. Your help for this newbie is invaluable. I will jump into the forums more often.

    Darrell

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