50% COC Return Triplex - Mortgage Assumption (Chicago Suburbs)

[Fernando Angelucci]

Hello BP Family!

I have one of those real estate unicorns available for wholesale... a bank approved mortgage assumption!

The situation is as such, the seller purchased this Legal Non-Conforming 3-unit (converted from a large single family before current owner purchased) in a predominantly Single Family neighborhood in a partnership with her brother-in-law, then a few years later she got a divorce, now she she wants out of the partnership because its "awkward." She is not an investor and has no idea what she is doing. This can be retained as a 3-unit for rental purposes or converted back into a Huge Single Family for Flip purposes.

Summary

Cost out of Pocket: $13,000 broken down as such...

Assumption fee = 1.5% of remaining balance ~$3,000

Wholesale fee = $10,000 (not contingent upon buyer passing underwriting so have a strong borrower profile if interested)

Monthly Net Operating Income = $551.66/mo current ($1,154.15/mo at market rate & par taxes)

Yearly Net Operating Income = $6,619.92 current ($13,849.80 at market rate & par taxes)

Equity = $75,000

Cash on Cash Return = 50.9% current (106.5% at market rate & par taxes)

Here are the detailed numbers:

Income

$2,555/mo from rentals (were on year leases then she let them lapse to month to month a few years ago because she did not want to deal with the hassle of re-signing). Market rent would be $2,950

$55/mo from laundry income

Total = $2,610/mo Income ($3,005/mo at market rate)

Expenses

Tenants pay utilities

Taxes = $691.67/mo (must be contested because they are over par by 32%) $484.17/mo at par

Insurance = $166.67/mo

Principle & Interest = $1,200.00/mo

Add property management at 8-10% if you will be using one

Total = $2,058.34 Expenses ($1,850.84 at par)

Mortgage Details

Subject to Chase Underwriting - less strict than regular purchase underwriting

Remaining Balance = $198,000.00

Remaining Term = 25 years fixed

Interest = 5.5%

P&I = $1,200/mo

Comps & Details

This is a legal non-conforming 3-unit that has grandfather status with the city of Brookfield. It will only lose its grandfather status if more than 50% of the structure is demolished and rebuilt.

Single Family Comps = $350,000

3-unit Comps = $275,000

This property has cosmetic maintenance typical of any rental property.

Owner is not willing to prorate taxes.

Photos and Documents

Here is a dropbox link with: https://www.dropbox.com/sh/16687fa0ui1etpj/AADvD7J...

Photos

Leases

Rent Roll

Tax Bills

The Original Mortgage and Promissory Note

Mortgage Assumption Documents

PLEASE EMAIL ME IF YOU ARE INTERESTED AS I DO NOT CHECK BP VERY OFTEN AND THIS ONE WILL GO EXTREMELY FAST TO THE FIRST ONE WITH EARNEST MONEY IN ESCROW AND OUR SIGNED ASSIGNMENT OF CONTRACT.