[Calc Review] Analyze Brooklyn Multi Family

[Marx Delices]

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Pros:

• The current owner would want to stay on the property, possible the basement studio as a live in super/property management renting the room at a discounted price. This allows me to be hands off.
• Great deal compared to surrounding comps

Cons:

• The property is currently not cash flowing due to tenants not paying rent. Owner is in the process of clearing through and evicting tenants via court. Only time can tell on the length of this process

Clarification:

• The 70K in rehab is aggressive for safety. The main price tags on rehab is a new roof and boiler.
• I would want to finish the basement. There is enough room there where it can be sectioned off and rented as a studio apartment. With enough space downstairs for a wash/dryer the whole building can pay to use (miscellaneous cash flow).

Spoke to my bank (Chase) about doing a 203K loan for rehab, they don't provide that but do FHA loan at 6.3% with PMI. However, they worry about my liquidity before approving me.

Do you guys think I should partner on this or borrow outside cash to bring up my liquidity/rehab and just pay back with the refinance. Should I be looking at one that can provide a 203K loan. 1st deal. Thoughts?