My "deal a day" exercise is turning into a potential deal
I've been trying to analyze a "deal a day" for the last few weeks to gain some experience (in truth it's been more like 3 a week) One of them has really turned into an interesting case. I've gotten a lot of numbers on it, and the more I learn the more intrigued I am. I've gotten the rent rolls, and am waiting on an insurance quote. It's currently only about 30% occupied, and been that way for the whole year. This seems to be due to being under managed, as far as I can tell, since the neighborhood is fine, and property was rehabbed a few years ago. I do still need to nail down a few more expenses. I talked to a commercial lender and got a ballpark rate and monthly payment.
As far as I can see now, God's got 3 main doors that He needs to open for this deal to go through (in reverse order):
3) The insurance numbers can't be prohibitive (flood & wind zone).
2) Bank will need to lend on potential income, not current NOI. Lender said they might could do that.
1) I don't have the $70,000 needed for a DP. Not even close. And don't currently know anyone that does.
But I'm not going to let any of these deter me. I'm going to keep going as if all 3 are green lights, until such time as the deal either dies or closes.