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Updated over 5 years ago on . Most recent reply

User Stats

14
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3
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Tim Ivanchuk
  • Real Estate Agent
  • Omaha, NE
3
Votes |
14
Posts

Analyze My Deal: First Time 10 Unit Rental

Tim Ivanchuk
  • Real Estate Agent
  • Omaha, NE
Posted

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.

Most Popular Reply

User Stats

958
Posts
1,138
Votes
Tchaka Owen
  • Real Estate Agent
  • Merritt Island, FL
1,138
Votes |
958
Posts
Tchaka Owen
  • Real Estate Agent
  • Merritt Island, FL
Replied

@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!  

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