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Updated over 7 years ago on . Most recent reply

User Stats

6
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0
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Luke Cachia
  • Real Estate Agent
  • Liberty, MO
0
Votes |
6
Posts

Advice of 1st Investment property

Luke Cachia
  • Real Estate Agent
  • Liberty, MO
Posted

Hi all!
I'm trying not to get caught in the infamous real estate purgatory with the analysis paralysis situation.

I have found a property which I think is an excellent deal. I need advice on funding the deal.
I currently have limited funds (due to the Dave Ramsey pay off debt snowball), so it's making closing this deal a little more difficult.
Here is the deal

Tri-Plex – 11.8% CAP Rate – 20.56% COC ROI

Purchase Price $105,000 ($2,000 non refundable deposit to secure this property)

Current Gross Rents = $1925/month

Expenses = $8328 (Taxes, Insurance, Utilities, Maintenance)

Value Add in expenses by charging monthly fee to tenants for Water and Gas current owner pays and is in above expense.

Washer/Dryer in units.

Top Floor 1 Bed 1 Bath - $650/month - $40 Late fee starting on the 5th of the month

Middle Floor 2 Bed 1 Bath - $725/month - $40 Late fee starting on the 5th of the month

Basement Unit - 1 Bed 1 Bath - $550/month - $40 Late fee starting on the 5th of the month

Rent = $23,100

5% Vacancy = (1200)

Expense = (8,328)

NOI = $13,572

Cap Rate = 11.08%

CoC = 20.56% after debt service of 75% LTV

Returns calculated with $15,000 in renovation expenses once tenants vacate. Each unit will need a nice make ready for new tenant carpet, paint, and may need new appliances.

Does anyone have any idea how I can fund this deal with limited funds?

Thank you so much!

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