Potential Deal

[Rick Jones]

Hello Everyone,

I have been reading this forum for a while and have found it immensely helpful. I am considering putting a multifamily property under contract and would like some third party fly by opinions.

Units: 3
Rents: 950, 1050, 550
Ylr Gross Rents: 30,600
Documented Expenses (Unofficial): 14,300
Asking Price: 175,000
Heat Payed by: Landlord

The property had two large usable backyards. In a decent area were other residents appear to care for their house. The owner has agreed to paint the exterior and re plaster the retaining wall. Two units are in good shape, one could use some bathroom and kitchen updates but not necessary. Utilities have been upgraded about 5 years ago. I would rate it a C+ grade.

Financing would be about 800/m for mortgage and insurance. Taxes are factored into the expenses, (14,300).

Assuming the numbers are as stated what do you guys think?

Thanks for taking a look,
BW

[Rich Weese]

I wouldn't automatically throw it out. I see some benefits, depending on your current status. No down is enticing, as is multiple units on one loan. Are you financially able to handle any negative cash flow and is your income from job secure? Can you handle risk? Do you have a significant other that is on board with this idea? Lots of things to consider, but I'd still take a look at benefits. Rich