Help With Analysis

[David W.]

Hello! 

I am going into escrow with a multi unit, two 2 bed + 1 bath, six 1 bed + 1 bath. located in . It has a rent roll of $16,000 per month. Price is $2,030,000. I am putting 33% down, 6.6% mortgage. Renters are all up to date and no missed or late rents. This offer would not seem attractive to middle America because it is not cash flowing as much but I would say this property will conservatively appreciate 5%+ per year. I own 2 sfr in LA and this will be my first step into multi. What do you guys think? 

[Rick Albert]

To be honest if you can't rely on your agent, then you need to find someone else. 

A solid agent will understand that there is a financial gain, but this is a relationship, so if it isn't the right deal, they can be honest with you and you are more likely to use them again and refer. I've told clients not to sell before, and then a few years later we put it on the market. I've closed three deals with him and he referred me to someone where I closed another three deals. 

I've heard mixed things on Section 8. One thing to keep in mind is it is my understanding (you would need to verify) that you get one shot per year to increase rents, but they can say no. That means you may not be keeping up with inflation.