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Updated about 9 years ago,

User Stats

680
Posts
650
Votes
Meghan McCallum
  • Specialist
  • CHICAGO
650
Votes |
680
Posts

I would LOVE an experienced investor's opinion

Meghan McCallum
  • Specialist
  • CHICAGO
Posted

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?

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