Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago,

User Stats

24
Posts
1
Votes
Johannes Ariens
  • Investor
  • Seattle, WA
1
Votes |
24
Posts

WA Multi-Family - First Property Help

Johannes Ariens
  • Investor
  • Seattle, WA
Posted

Hey everybody,

I have a place under contract and just received the financials.  Here are the details of my first offer and what is was based on:

5 Units (all rented) = 1,995

1 House 2/1 (rented) = 650 

7 RV Hookups @ 350 (3 rented) = 1400

Expenses = 14,400 

Asking: 249,000

Declared Gross Income: 55,200

OFFER 1 (Based on above)-

Owner Financed

Price: 240,000

Down: 20%(48,000)

Interest: 8%

Terms: 10 year balloon on 30 amortization

Returns: Cash on Cash= 28% Cash Flow= 1153

Reality

5 Units (all rented) = 1,995

1 House 2/1 (rented) = 650

7 RV Hookups @ 230 (3 rented) = 690

Expenses = 14,400

Asking: 249,000

Actual Declared 2014 Gross Income: 37,364

Actual Declared 204 Expenses: 34,367

Given this information the expenses are obviously bloated, the utilizes are not meter separated (where 50% of the expenses come from) and the rents are below market so my question is what should my next offer look like?

Thanks a ton for helping out a newbie BP!

Johannes

Loading replies...