Owner Financed 8-Plex Deal Analysis

[Jay L.]

I'll preface by stating that the property for sale is actually two 4-plexes, next door to each other, being sold as a package.

Some details about the property:

• Appears to be a Class C+ or B property
• Each unit has two bedrooms/two baths
• Covered Parking
• Buildings are being described as being well maintained with some updating as well.

Some details about the financials:

• $360,000 for each building - ($720,000 total)
• Stated Gross Income ($63,442)
• Stated Net Income ($56,824)
• Rents ranging from $600 - $850 right now
  • Average Rent per unit is around $660. 
  • Could imagine stabilizing all rents to $850 over the next 18 months, without much issues due to the local market and the area the property is in.

Some details about the owner financing:

• 20% down ($144,000)
  
• 6.5% rate at 15 years

What do you think about this deal??

This is my first question on Bigger Pockets, so please be nice :)

Thanks,

[Adrian Smude]

@Devin Beverage nicely done on analysing the deal, I do think you are very conservative with your thinking.  That's good for the surprises but don't lock yourself into not getting a deal if it's close to your numbers because it will be very difficult to find these numbers in our market.

@Nick Baldo I would also like a copy of the document.  Thank you.