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Updated almost 7 years ago,

User Stats

94
Posts
51
Votes
Erik Stewart
  • Rental Property Investor
  • West Fargo, ND
51
Votes |
94
Posts

Need deal structure tips - CFD

Erik Stewart
  • Rental Property Investor
  • West Fargo, ND
Posted

Hello,

I am working with sellers on a two property deal. Property #1 is a SFR a few blocks from University and property #2 is an 8 unit building close to campus as well. The sellers are willing to do a contract for deed sale with approximately 5% down. At this point I have made my offer and they have countered. I will post the numbers of my estimate of where I think final numbers will end up and update if necessary. They are motivated to sell the SFR as it has been sitting vacant for over a year but they are not motivated to sell the 8 unit building. Sellers are planning on moving out of state and selling all properties in a couple years. Any advice or suggestions from past experiences on ways to package to two properties together would be most appreciated.

Property 1 - 1890's SFR on small lot near Campus

Purchase Price/Down Payment: 130,000 / 5,000

Annual rent: $14,400

Vacancy: 720

Taxes: 1,662

Insurance: 800

Property Mgmt: 1,094

Repairs/Maint: 1,000

Cap Ex: 1,200 (will need shingles and water heater w/in 5 years)

Misc.: 750

NOI: 7174 - Debt Service: 6250= $924/year cash flow= 77/month

Initial CoC return: 924/5000=.1848

Property 2

Purchase Price/Down Payment: 165,000 / 8,000

Annual rent: 28,800

Vacancy: 1,440

Taxes: 2,868

Insurance: 1,000

Property Mgmt: 2,189

Repairs/Maint: 1,200

Cap Ex: 800 

Misc.: 1,000

NOI: 17,603 - Debt Service: 7,850= 9,753/year, cash flow= 813/month

Initial CoC return: 9753/8000=1.219