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Updated over 7 years ago on . Most recent reply
Thoughts on this Deal
Hi All,
New investor looking for a little feedback and/or constructive criticism on a deal I'm analyzing. This is a mixed unit building, 8 apartments (1BR/1B) and 2 retail offices. Offices are leased up for 5+ years with long term stable businesses. Apartments have historic 100% occupancy. Rents are only slightly below market, $50-$100. Roof and windows were all replaced last year, but older brick building built in 1930. Great location in Chicago suburbs, short walk to public transportation.
I have attached the numbers and my analysis. Strategy is long term buy and hold for passive income. Numbers below are run with a disposition at 10 years with a 7% cap rate at time of sale. Any help or feedback is greatly appreciated.
Thanks in advance,
Scott
Most Popular Reply
- Cost Segregation Expert and Investor
- Lakewood, NJ
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@Scott Skinger The loan looks great! Do you have an LOI on the terms of the loan or is it just speculation? If just speculation, I would consider a few other possible loan scenarios because that could change the deal significantly. It looks like a solid deal at face value. Of course, I don't know the market in suburban Chicago so well. Good Luck!