Despite the Uncertain a Deal is a Deal...Right?

[Drew Zervos]

Hi Everyone!

My wife and I were ready to finally take action in a real estate investing career this year and then the virus struck. We are currently in negotiations with a seller on a newly renovated multifamily where one unit is currently occupied for what 2/5 the mortgage would be. We plan to live in the other unit which would make our mortgage payment equal to what we pay now in rent. I have run the numbers on the entire property as a rental assuming we move out in a couple years and rent both units and the numbers work great (15% COC ROI w/ $234 monthly cash flow). Our current lease expires in July so we will either have to renew or buy something by then. However, we are trying to decide if we should wait to see how this virus thing plays out. We are not worried for our job security, and we could afford the mortgage regardless of the other unit being rented out or not, but our closing costs and down payment would leave us with about 4 months reserve. But I also like to trust numbers and feel a deal is a deal and I don't think the seller will go any further down in price regardless of the outcome of the virus as I know what they paid for it and roughly how much money in renovations they spent and with our current offer they will hardly break even. What is everyone's thoughts??