There are 2 apts. (2 Bed/1 Bath Each) on top of 4 retail shops

[Account Closed]

Hello everyone, I viewed this property today in Newark, NJ and was wondering if by the numbers you guys can help me out. Now the agent who showed me the property, who also has done investing, told me with some work, about 20-30k I can list the property at about 375K. Asking price is $275K but let's say I get it for $250k. So I can either flip it, keep it for cash flow, or even maybe wholesale the deal. I am still very new to all this but I am just throwing myself out there to take action and see properties. These are the numbers. Also has a garage that can be fixed up and maybe be rented out as a storage space or a car garage. Sorry if the information is not perfectly posted but somehow it was not copying and pasting correctly as it was in the report. Any help would be appreciated. Thank You.

This property is a two story all brick building consisting of 4

Commercial Stores (Hair Salon, Church, Braiding Salon and Barber

Shop) and 2 two bedroom Apt's. Separate Utilities.

Price Per Unit $45,833

Gross Multiplier 5.05

Cap Rate 13.42%

Number of Units: 6

Construction: Brick

Income

Gross Income Rent $54,420

Expenses

Taxes 2015 $7,531

American Water 1,332

Elec. 0

Maintenance 5% + Vacancy 5% 5,442

Gas (heat & hot water or Oil- apts)

0

Insurance 3,210

Est. Total Expenses

17,515

Net Before Debt $36,905

First Mortgage Annual Payment $14,469

Second Mortgage Annual Payment $0

Total Debt Service $14,469

Estimated Cash Investment $72,313

Estimated Cash on Cash Return

$22,436

Est. Percentage Return on Cash Investment 31%

 Lease

Unit Tenant Rent Exp/renew options

1 - Apt. 1 - 2 bed -850 vacant

2 - Apt. 2 - 2 bed 850 vacant

3 - Church 600

4 - Hair Salon 985

5 - Braiding 600

L1 Barber Shop 625

L2 garage 0

Monthly Total $4,510

Estimated Annual Income $54,120

Acquisition Cost

Downpayment 25% $68,750

Points 2,063

Attorney's Fees 1,500

Total Estimated Acquisition Cost $72,313

First Mortgage

Mortgage Amount 75% L.T.V. $206,250

Interest Rate 5.00%

Points 1% 2,063

Payments Per Year 12

# of Years Payout 25

Years to Baloon 5

Monthly Payment $1,206

Annual Payment $14,469

Second Mortgage

Mortgage Amount $0

Interest Rate %

Points 0% 0

Payments Per Year 12

# of Years Payout 30

Years to Baloon 5

Monthly Payment $0

Annual Payment $0.00