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Updated almost 5 years ago,

User Stats

16
Posts
3
Votes
Michael Moussa
3
Votes |
16
Posts

5 unit building bad move?

Michael Moussa
Posted

Hello all, new here. Little background... Im under agreement for a 5 unit building for 420k. The building will net after all expenses 16k per year. Did I overpay for this? I think I’m panicking because I currently have 12 single family units that net an average of 6800 (30 year loans on most) a year, and also only cost me an average price of 45k each(they are all worth close to triple now, I got in at a crazy time and renovated all of them.)But each unit on this purchase only nets 3200 a year(the Loan is for 15 years, not 30 so payments are much higher). The prices in my area just continued to rise and rise and I kept passing on deals because I was thinking prices would drop. So I just bought it because The way I saw it, the lost rent while waiting for a good deal will prob equal it out anyway. For all I know now, It may be 10 years before I can ever sell this building for 420 again(just guessing). It is top down remodeled and no work will add any value...I never have any intention of selling anyway ... just refinancing down the road sometime...am I going to be okay basing on cash flow alone like this? Am I overlooking anything? Am I just panicking for nothing and being a baby since it’s my largest career purchase? Someone helpppp!

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