Do these numbers look reasonable?

[Adam Clark]

Looking to Wholesale 123 Main Street I came in contact with Please see the information below Thanks! Tell me what you think!

3 Unit

1 – 1 Bedroom

2 – 2 Bedrooms

Single Bath in each

Exterior Great Condition

Interior needs minor painting/Cosmetic 

Previous Owner Paid 40k in 2008

Tax assessment – 40k

It is a distressed neighborhood but decent property for that neighborhood. Some vacant Building on the block may bring down the assessed value of the property. Owner wants to sell but I haven’t offered him a price. I say try to lock the deal in for 35k and flip it to someone who is interested in cash flow for 40k. Please see the numbers below. I know there is too many variables in the real estate market to determine what is a good deal or not. But a lot of investors around here invest in these type of properties.

COMPS on the same street

Three Family Year-Round Residence(230)	2,724	8/8/2003	$48,000
Three Family Year-Round Residence(230)	2,400	12/9/2005	$20,000

Three Family Year-Round Residence(230)	1,894	8/26/1998	$55,000
Three Family Year-Round Residence(230)	2,100	8/29/2006	$82,000

The Building Im looking at is about 3500 Sq Feet Last Sold for 40k 2008

Offer $35,000 Flip for $40,000 – See Below

3 Unit x $600 Per Month = $1800

1 Monrh Vacancy Per Unit $600 x 3 Unit per month= ($1800)

     Annual Gross Rental Income $20,000 Per Year

Property Tax$126 Per Month x 12 - $ 1512

Maintance Cost $400 Per Month for all 3 units12- $4800

Annual Net Operating Expenses       $$6300

Annual NOI

Annual Gross Income – Net Operating Expenses

     $20,000-$6300 = $ 13700in Cash Flow

Return on Investment (ROI)

CashFlow /Investment Basis ($3000 in additional repairs)

      $13700/$4300 = 31% Return

What do you guys think?

Thanks,

Adam C