Two possible deals - which is better?

[Dave Versch]

Hi Everyone,

I'm looking at 2 possible deals, and I'm only going to be able to swing one of them at this time. Planning buy and hold. Question is, which one sounds better:

Deal 1:
Bank-owned, 8 units, asking 250K, offered 175K and accepted.
Gross rent = 49K (currently 100% occupied)
Stated expenses = 19K

Deal 2:
4 units, asking 122.5K, offered 112K and accepted,
Gross rent = 27.5K (currently 100% occupied)
Stated expenses = 9.2K

[Will Barnard]

Originally posted by Josh Green:

dave, are you going to be living in the 4 unit? that rate sounds like a OO rate.

Ditto that! The very best rate I have seen today is 5.875% with 1.5 pts buy down for a duplex with 25% down NOO loan.

5% can only be obtained today on a OO loan and not for a NOO loan.