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Updated over 9 years ago,
Seven unit - 3 building deal analysis- - my first multifamily
Hello all,
I have come across a potential deal in Fort Lauderdale. I would say this is a C neighborhood and consists of three buildings (two duplexes and one triplex)The house is listed for 525,000 and I reached put for hard money for this loan. I will potentially put down the 20% and have the rest financed. The hard money consists of a 3% consultancy fee and a 3.5% origination fee. They have offered a 10 year term with a 30 year amortization fixed at five years at 4.875% adjusted to the 5 year LIBOR swap plus 3.0% with a floor of 4.375%.
The property is fully rented grossing $6,300 per month. Taxes and insurance would be around 900 a month. There is some minor room to raise rent and using the 50% rule I question If this property is worth it, however; I think I am excited to build a portfolio and an opportunity for hard money and 7 units.
Suggestions? Thanks again!