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Updated over 6 years ago,

Account Closed
  • Hillside, NJ
0
Votes |
1
Posts

Help me analyze this deal

Account Closed
  • Hillside, NJ
Posted

Would love help analyzing this deal an agent presented to me because I'm running it in the calculator and it seems way too good to be true. This will also be my first property. 

This 3 family house is going for 245k and I think they're willing to reduce it more, it's been on the market for about 40 days. Two units have 3bd 1br and one unit has 1bd 1br. I could potentially bring in $3800-$4100. I put CAPEX for 10% and vacancy at 5%. I tried to increase all my numbers for worst case scenario and cashflow is at about $350. Wasn't sure if I could buy this property with FHA but according to the agent, I could. Going to talk to the lender to double check on that today.

Would I be able to even negotiate that 245k to about 225k or 230k? 

How can I raise the rent on the existing tenants without being the bad guy? All 3 tenants are paying lower than average esp the 1bd. They're paying $700 and the average is $1100 in that area.