Here's the Deal

[Phil C.]

Hello Everyone,

I am looking at an apartment building which appears to be a good deal. It is listed at 380k.

12 units - 1 studio, 8 One Beds, 2 two beds.
Rents range from 500 - 750/unit. Total RR is $6775/month w/ 1 unit vacant. Around 7400.month fully rented.

Property is in pretty good shape overall. Boiler, Roof and SIding are about 10 years old. The location is not great but not a warzone/ghetto.

Owner pays utilities (not seperatly metered). So Annual rents = 89k * 96% for vacancy = 85k * .45 (conservative on 50% rule due to utilites) leaves 38k left over for cashflow and debt service.
1200*12 =14.4k cashflow leaves about 24k for debt service.

Or if I use the 2% rule the building is worth about 350k which seems like a reasonable offer based on the asking price of 380k.

Now, the other part, I am not sure I can get the down payment that the bank requires and the seller does not want to do any owner financing. Any creative ideas on how to get some cash?

Thanks,
Phil