New Cleveland propertie ...

[Uwe S.]

Hey,
I have found a new investment propertie in Cleveland with owner financing (10% down and 7.5% interest). Here the data:

Purchase Price $54,750.00
Total Annual Income $34,200.00
Total Annual Expenses $20,726.00
Down Payment Amount $5,475.00
Percent Interest Rate 7.50 %
Total Mortage Term (years) 15

all Utilites paid by tenants, only common electric and water by owner
needs $15k for repairs, 6 units with one vacant unit actual, annual income is for fully rented building

I run this on iAnalyze and received this:

Gross Rent Multiplier (GRM) 1.60
Net Rent Multiplier (NRM) 4.06
Operating Expenses Ratio (OER) 60.60 %
Debt Service Coverage Ratio (DSCR) 2.46
Break Even Ratio (BER) 76.63 %
Capitalization Rate (Cap. Rate) 24.61 %
Internal Rate of Return (IRR) 152.64 %

This should be okay I think. Any other thoughts? Thanks.

-Uwe

[Peter Giardini]

Uwe... One think that struck me was the expenses being 60% of income. Did I read that correctly? What is contributing to that high level of expenses?

Other than those high expenses, and assuming the income numbers are correct this is a deal I would jump on.

Best of luck!