Help me evaluate this off market deal that's non-traditional. Seller will finance
Large building with 3 storage bays/shops on one end
1. Rented at 1500/mth
2. Will rent back to owner at 1500/mth
3. Small one rented at 500/mth
4. Apt 1 rented (3 bdrm) at 1600/mth
5. Apt 2 rented at 1300/mth (2 bd)
I would call the rentals B-/C because they are in a giant metal shop and low grade materials.
So gross income of 76K annually.
Expenses:
Insurance is currently $14652 annually but that seems way too low when SFH go for that much
Taxes are currently 2800/yr, but I expect those to nearly double if I pay his asking price (so let's say 5k/year.
Landscaper 1800/yr
All utilities are paid by tenants
Unknown roof age.
He wants 720000 but I think I should allot at least 10%-15% repairs on this older funky building that he's managed and maintained himself. (I will self manage). So I would think the property is worth more like 600K-650K. We haven't discussed terms of his owner carry yet (10% down). It's currently assessed at just under 500K. He bought in 2021 and paid 320K.
Building in fair condition 33 years old