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Updated about 6 years ago,
Help me on a new year new deal!!!
Day 2: Here is the deal I looked at on January 1st and would like help crunching the numbers. I am new to all of the calculators and some of the terminology so please go easy on me. Thanks for any help.
Here is the property checklist I did for the first time.
Other pertinent information I think. The gentlemen that owns this is 87 years old and no longer deals with the property. The son and his wife maintain it. They are tired of dealing with it so they are beyond ready to sell since it was on the market a few years back and got no real offers that they wanted at the time. This time appears to be different and already stated that, "I would really like to get 100,000 for my dad out of the property." I think this also tells me that I can come in a little lower especially if that is what makes sense on the numbers. The ptacs work for now but could go out any time. Newer ones should release the use of that central heat that the owner pays for as the units are smaller in size. I can replace the ptacs myself also so that helps with the costs. That appears to be the only major updates the units need. One unit could receive some TLC but again I don't believe it is dire at this time. It is totally satisfactory IMO. The other upside is the rent is a little low in my opinion and I would remove 3/4 tenants. the rent is 450, 425,425 and 375. I think the one bedrooms could be 475-500 and the two bedrooms could be 525-575. I would raise the only tenants who i think qualify as good tenants up 50 bucks to 475 for their one bedroom and clean everyone else out and re-rent it at a more appropriate rate. The goal being to gross 2000 a month to leave as much room on the bone for all other expenses and to make it more attractive to the bank. Lastly they are willing to do a lease purchase agreement which is the most advantageous to both of the parties I do believe since I now have experience with this technique.
*I do know the sellers son so remember that as I don't want to mar any friendships with them
*I need help applying these numbers to a calculator as I believe that is the next step if there is anyway I can get someone to help with that.
Here's an appraisal from 2011