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Updated about 9 years ago,
I would LOVE an experienced investor's opinion
Hello BP,
I was presented an offer today that I walked into without warning. While introducing myself to some local commercial real estate agents I mentioned to the oldest member that I was really interested in an opportunity for a 20 something multi unit property with seller financing. A little bit about me...I have a sizable amount of cash, but what I'm learning from this site is that its better to use less cash to score deals if you can. After talking to the team about what I was looking for he came back to me and said that he had actually been looking to sell his property and that he would finance it. Here are the numbers:
27 Unit Mixed property
# /ea /m total
Efficiency Units 10 @ $410 $4100
1 Beds 11 @ $480 $5280
Loft Efficiency 2 @ $600 $1200
storefronts 1 @ $900 $900
2 @ $300 $300
3 @ $500 $500
4 @ $800 $800
Laundry @ $370 $370
less vacancy 4% -538
Monthly $12,912
Yearly $154,944
Yearly expenses 42% (-64,907)
Net Yearly income $90,037
What price would you pay for this property? Would you pay more because it is seller financed?
I'm going to sit down and read more into this, study local rental rate a little harder, but in the meanwhile...an opinions?