[Advice Needed] 1920's 4-plex MOLDY TERMITES YUM.
Hi All,
I have a deal on the east coast of FL just a few hours up from Miami.
After many weeks of trying to get the offer accepted, I finally did. After doing a through home inspection report I came to realize that there are some issues with the property.
It is important to note that the 4 plex is actually a 3/1 1920's SFR , and a 1960's 3-unit in the back. Two seperate stuctures with each having their own issues.
On the main house it appears that there is structural damage due to termites (which the seller stated that happened before he was the owner, and its clear now of any termites). I have a full home inspection report that I can gladly share to anyone that wants to help me :)
Basically, the units interiors are pretty easy fixes, but there is also mold inside some of the units.
The MAJOR issues are that the WOOD Framing needs to be repaired under the home, and the Plumbing needs to be updated since there is leakage. (sewer leakage).
While I am sure that this over $1k CASH flowing deal is great for now, these issues will need to be rehabed in the future.
What do you guys think I should do?
Here are the numbers:
Purchase Price: $419,900
| Monthly Income: $4,800.00 | Monthly Expenses: $3,609.91 | Monthly Cashflow: $1,190.09 | Pro Forma Cap Rate: 7.32% |
| NOI: $36,607.00 | Total Cash Needed: $57,371.00 | Cash on Cash ROI: 24.89% | Purchase Cap Rate: 8.93% |
| Total operating expenses: | Mortgage expenses: | ||
| Vacancy: | $144.00 | Repairs: | $144.00 |
| Water & Sewer: | $200.00 | PMI: | $285.00 |
| Insurance: | $416.00 | P&I: | $1,860.49 |
| Property Taxes: | $460.42 | Misc: | $100.00 |