Multi-Family off Market Deal in Cleveland - How does this sound?

[Lamont Marable]

I have a deal in 44111 that's an 8 unit for $249,000 and I'm ready to submit an offer.  How does this sound?  Also, are 4 options too much?

___________

We analyzed the financials, applied the suggest (9.44) cap rate and the deal is fairly priced. However, the vacancy rate is 0.36%, which is good, but if you include bad debt, concessions and with the city's average vacancy rate the numbers change. Let's consider a few options.

Option 1:Seller Finance $252,000 with 20% down at 4.0%
Option 2:All Cash Offer for $220,497
Option 3: $239,000, @ 13% VTB / 2.5% over the loan
Option 4: $247,000, @ 20% VTB / 3% over the loan

Thanks BP!!

[James Wise]

Originally posted by @Lamont Marable:

I have a deal in 44111 that's an 8 unit for $249,000 and I'm ready to submit an offer.  How does this sound?  Also, are 4 options too much?

___________

We analyzed the financials, applied the suggest (9.44) cap rate and the deal is fairly priced. However, the vacancy rate is 0.36%, which is good, but if you include bad debt, concessions and with the city's average vacancy rate the numbers change. Let's consider a few options.

Option 1:Seller Finance $252,000 with 20% down at 4.0%
Option 2:All Cash Offer for $220,497
Option 3: $239,000, @ 13% VTB / 2.5% over the loan
Option 4: $247,000, @ 20% VTB / 3% over the loan

Thanks BP!!

 Generally speaking an 8 unit at $250k in 44111 is a hell of a deal.