Bronx property

[Christopher Griffith]

Good Evening BP 

Should I buy this or let it go

2 Family home asking price $340,000 ( bank pay off)

Layout is 3/1 with 2 full bathrooms

no basement no attic 

needs $35,000 repair 

I want to rehab the property 2 family homes can go from $425,000 -$440,000 (North Bronx)

The 3 beedroom can rent for $2,000 and the 1 bedroom can rent for $1,200

what should I do ?

Thanks 

[Adam Bartomeo]

Based on those numbers I would not buy this unless I was to come in with cash and not use any leverage.

I look for exit strategies and you will only have 1, rent it. I look for a GIM of 5 or less, this is at 9. And, I look for a cap rate of 10 or more, this is about a 7. I also like to see $300 or more cash flow from each unit, I am only seeing about $150 for your example.

I would have to offer $250,000 or less to have it make sense for my objectives.

I hope this helps.