Private Sale 3 Family

[Chris Daliani]

Hello All,

I am currently renting a 1st floor apartment of a 3 family in Bayonne, NJ. My landlord and I have been discussing me purchasing the property from him. There is currently an oil tank which has been abandoned for 30 years according to him. We are working on contacting companies for removal as I will not purchase the house without removal or a clean bill that the soil is not contaminated. 

I requested expenses from him to include taxes, insurance expenses, utility expenses (common areas only), and water/sewer. I will then run the numbers through BP calculators. I am wondering if I am missing any expenses to run.

Current rents:

1st floor $1250, 2nd floor $1100, 3rd floor $700

The 2nd floor can realistically get $1350-1400 once I renovated it a bit and $725-750 for attic unit.

I just want to make sure I am going about this the right way and I plan to finance it with as little down as possible. I was originally buying the home for $370k when he had it listed with a realtor some time ago. Now that we would be doing this private I would hope to get the property for 340-350k range. Taxes are just under 10k/year.

I was also considering seller financing, but am not sure of the benefits to that. I will have to do some research on that.

Thanks!