Analyze My Deal: First Time 10 Unit Rental

[Tim Ivanchuk]

I am trying to figure out if I have a deal or not. I have only a condo right now and this complex just fell into my lap.

Parameters:

- Asking price 189k

- 10 Unit complex

- Built in 1940

- expenses seem to be like 2k a month? I haven't found exact info in this. The guy is old and had bad accounting

- 5-6% for interest rate from the bank, 20% down, 20 year amortization

- Rents are 400-650 depending on size, after fixing this could go up to 550-700 easily

- Building needs some serious fixer up work about 30k

- AC is window units, boiler is used for heating

Any other information I should add here?

Financing would be through a smaller bank, 20% down which I will leverage equality in my other rental, possibly little or no money down.

I am hoping to get some light on this. First commercial deal ever. If this isn't allowed or,I need to change stuff let me know. Thank you.

[Tchaka Owen]

@Tim Ivanchuk - looking at the numbers very loosely, it looks like it could be a winner, particularly if you are able to get the higher rents. Only have one concern: $30k of rehab. That is not "serious fixer up work" by any stretch of the imagination. That's approximately $3k per unit (not including exterior, et). That's cosmetic. Go through and figure an honest estimate of the work needed......if it's $60k, so be it; the numbers could still awesome. Good luck!