Help

[Katrina P.]

Hi All,

I do not know why I experience such great anxiety every single time it's time to "pull the trigger."  So, I just wanted to run this deal by you guys, I guess for some encouragement to actually pull it, and some input, of course.  So here are the numbers.

2 multifamiles (package deal)

1st:

6 1 bedrooms

4/6 currently rented at $560/mo

other 2 will be rent ready upon transfer of ownership

Owner pays all utilities, estimated at $500/mo

Taxes $300/mo

2nd:

3 1bdrms, 1 2bd

Everything inside and outside, pretty much brand new

Vacant

Rents should yield $500-550 per month for each unit

Tenants pay gas/electric

Owner pays water/sewage

Terms:

Total package price $110k

Down payment:  $20k

Seller Finance:  $90k

Interest:  6%

Term:  6 years

I am also thinking of whether to use cash for the 20% or finance that too? If I finance it, payments would be roughly $400/mo. So any thoughts? As always, I have a bit of anxiety about it...I currently own 5 SFR, and had anxiety with each of those purchases, and also for my primary. I guess it's even more anxiety with this one because it's my first multifamily purchase, and I'm doing two at one time...huge step from 5 doors to 15. And btw, I have one other 30 year loan on one of my properties...20 years left, and one other loan with 4 years left. The others are free and clear.

Thanks, in advance, for any input/encouragement!

Katrina

[Zach Mitchell]

From the surface this seems like a pretty great deal, almost too good to be true. What about any deferred maintenance? How much work does the property currently need? What is the area like? Why are there so many vacancies if pretty much brand new inside and out? What is the sellers motivation for selling the property without even trying to lease it up first?