3 Family Brick - Bronx , NY

[Francisco Ycaza]

Hello Forum ,

I just came from visiting a FSBO who is selling a single family and he mention to me about a neighbor who is selling a 3 Family and had keys for property. Just need some feed back which is appreciated from members who own 3 units or more .

The numbers : BUY AND HOLD Strategy

- Asking $550k

- Tax assessment $525k

- All units currently rented

(2)- 3 bedrooms , kitchen , bath and tenants pay all utilities and water. $1300 each unit.

(1) - 2 bedrooms , kitchen , bath and tenant pays all utilities and water $800 .

- Gross rents collected $3400 X 12 =$40800

- Taxes $5600 (2014)

- NOI = $35,200

- all units have separate meters .

- Rents are low because tenants have been there for a very long time and are no headaches.

- Market rent for a 3 bedroom $1600-1700

- Market rent 2 bedroom $1100 - 1200

- Offer $400k

- 25% DP = $100K

- Commercial loan $300K

- 30 YR loan

- 7% IR

- DSCR $1995 X 12 = $23,940

- DCR 1.47

Do my numbers make sense if Seller agrees ?

Thank You !