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Updated over 6 years ago,
[Calc Review] Help me analyze this deal
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Thank you in advance for your thoughts on this potential purchase. 6 of 8 units have been upgraded and new roofs on each 4 plex in 2017. Mechanicals are newer with exception of two ac units. The terms on most commercial lending I have found are 5-year term on interest rate (readjusted every 5) and 20-year amortization. The cash flow is much better on a 25 or 30 year amortization, but I am having trouble finding those terms without paying around 8% interest. interest rates are definitely on the rise.
I think long-term the investment could be good and would cash flow $25-26k per year after all expenses and after the loan is paid off. I am torn on if it is a smart investment or not.