Counter Offer Help!

[Stacey Blunt]

Hello all,

Just to give you a little bit of background about the deal... This will be a lease option agreement with a purchase price of $275,000 and a down payment of $25,000. Remaining balance of $250,000 will be amortized over 17 years @ 6% with a balloon payment no earlier than 5 years and no later than 7 years.

17 unit Apartment building in a C area (14 of 17 currently rented @$350/month)

Current monthly rent revenue = $4,900.00

Monthly Expenses include:

Lease Option pmt = $1894.50

Monthly Insurance = $167.00

Monthly Taxes = $589.00

Monthly Property Mgt @ 7% = $343.00

Maintenance & Repairs @ 10% = $490.00

Vacancy @ 10% = $490.00

Total NOI = Approx $925.00 (with 3 vacancies)

With a new management team in place, incremental increases in rent and a lower vacancy rate I feel like this deal will be great. What are your thoughts on this deal, and let me know if I left anything out!