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Updated over 7 years ago on . Most recent reply
![Erica Shaunta Thompson's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/825882/1621499388-avatar-ericas32.jpg?twic=v1/output=image/cover=128x128&v=2)
Owner financing deal on 8 units! Need help newbie
This is what the agent representing the property just sent:
Owner financing consists of two notes for property:
1.) Assumable 96 month term note at 6% subject to approval by note beneficiary.
Term remaining - 67
Balance remaining for 105- $147,909.22
Balance remaining for 106- $170,822.51
2.) New 2nd note financed by current owner at 6% on 20 year amortization with 3 year balloon to repay or refinance balance.
Principal balance to be the difference between purchase price and remaining balances on 1st position assumable note at time of closing. Each of the two properties to have equal halves of that amount as principal balances.
Monthly payments
Main assumable note-
105- $1339.73
106- $1483.01
New smaller note- $725 for 105 and 106 combined
It is for 8 units in a C area.
Property taxes -
105- $3,713.49
106- $3,623.85
2016 Operating Income-
105- $24,273
106- $24,458
2016 Net Income-
105- $14,215
106- $18,044
Sq. ft.
105- 4130
106- 4130
Lot size-
105- .25 acres
106- .26 acres
Tax appraisal-
105- $215,350
106- $210,150
Year built –
105- 1995
106- 1996
Zoning code- R-4: Multi Family Residential District
Age of hvac- original with construction in 1995
Age of roof – unknown, no leaks
Property type- traditional townhouse
Construction – brick
Unit specs- all 2 bedrooms, 1 and a half bathrooms. Both beds upstairs, half bathroom down. Deck on back. All units nearly identical in layout. Washer/dryer closet downstairs.
Advertised rental rate- 695 monthly.
Management: contract with Management
New leasing fee: 200
Management fee: 7% of gross
Management contract is on month to month basis
*would I be able to eventually refinance out of the seller financing
*is this a bad deal
Most Popular Reply
![Chad Nagel's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/467727/1621477982-avatar-chadman154.jpg?twic=v1/output=image/cover=128x128&v=2)
32k combined NOI (assuming your figured your NOI properly with out debt service)- 42k in debt= -10k year carry (not prolly figuring in any cap x or vacancy). As I steal a line from the rich dad book, how many deals can you continue to buy if you buy deals that lose money vs ones that cash flow.