Deal or No Deal ? Short Sale Approved

[Terrell Sapp]

"(( SINGLE FAMILY DUPLEX )) set up as a 2 family in Mt Vernon, NY

1st floor:

1 bedroom, kitchen, living room and full bath.

2nd & 3rd Floor duplex:

2nd floor: livingroom, large kitchen/dining combo, office space

3rd floor: 3 bedroom with full bath.

Taxes are $11,258 but could be grieved. I think it's being taxed at a higher amount. The values in that are currently are between $300k & $350k

$250k all cash to take this property now."

Correct me if I'm wrong: Mortgage would be roughly $3,000? ( isn't the mortgage 1 percent of the value?)

Whether good or bad, can you please elaborate. This is a deal someone has already under contract, I'm not sure of the short sale process.

[Nathan Emmert]

Not sure what you're asking us to evaluate.

You didn't give us the market rents for the units.

You didn't tell us what fair market value on the property was.

You didn't tell us whether there were split utilities on the property.

You didn't tell us what sort of financing you had lined up or how big of a down payment you were planning to make.

You didn't tell us your goals for the property.

Without this info how are we supposed to evaluate the purchase?  Are you buying equity?  Beats me!  is the property going to cash flow?  Beats me!  All I know is they're asking $250k cash and the property taxes are outrageous.

My gut feel is that there is no way in hell this is a deal but I'm not sure.  I'm guessing it will rent for about 1% of purchase price but given that about 33% of your gross rents are going to go towards paying taxes the property won't cash flow.