All Forum Posts by: Mannan Razzak

PNC Bank

UPdate: got the APR to 5% with $2500 origination fee.

So, we are approved for the loan. 20%down with 5 year term/25 year amort with 0.5% origination fee. I had spoken to other banks who want 25% down with 20 year amort. This approval take the least out of my pocket in downpayment and monthly mortgage. We are only purchasing the property and not the vacant lot.  Thanks everyone for your help. 

Hi, I just started to read BRRRR and am wondering if it's wise going for this 6plex and having $180k locked up for many years. These funds can be used over and over again with the BRRRR method.

We are in the process now to acquire the property.  Unfortunateley/fortunately, the owner is no longer intersted in owner financing. We are going to put 20% down and get a 15y mortagage. I will keep the thread going as we close. Thanks

Hi all. Looking to see what to do for this 6-plex @Jorjio Hopkins, @Allyssa McCleery, @Scott Morongell, @Barry Sanders @Jaysen Medhurst

1. Asking price $900,000. 

Total Monthly Income: $9,625.00

x50% for Expenses: $4,812.50

Monthly Payment/Interest Payment: $4,026.16 @5% over 30 years

Total Monthly Cashflow using 50% Rule: $786.34

The rents is about market rate. I expect to do some fresh painting of the hallways and increase the rent by $50/month/apartment to the current rates.

The owner is willing to do owner financing for 2 year with $200K down but I have only $150K. I inquired with banks I already have relationships with and reported needing 25% down for investor properties. I dont have 25% down to go to the banks now. With interest rates going up,  in 2 years the current rates with go even higher. Should I find a way to get the loan from the bank or somehow get the owner financing done?

We met with the owner at the site. He showed us one apartment- 2 bedroom and 1 bath, all utilities are paid by tenant including water.  He is looking to sell the building and the vacant lot next to it that he owns as a package ($1.2m). I really dont need the lot- 75x100 and wont be able to have capital for at least 2 years. Income is $9625/ month and he has  not raised in several years. Taxes for both lots $20k. He is agreeing to do seller financing for 2 years at 5% with 15% down.  The 50% rule doesnt work (-$555) if I add the cost of the lot to the purchase price. It does work if its the 6 units only with cap rate of 6.4%. Using the BP calculator for rental property with the fixed cost including- vacant 5%, capex 5%, repairs 5% there is cashflow of $837/month. The other big question is can I get a decent refi in 2 years. 

@Scott Mac, @Jorjio Hopkins, @Allyssa McCleery, @Scott Morongell, @Barry Sanders 

Thank you everyone. I'm looking to purchase this property. Im meeting with the owner to see the units today. 

Hi all. Im finding it very difficult to find comps for a 6 Unit building we are looking to purchase. I cant find anything on zillow or trulia. Appreciate your help. 

@Zack Karp do you do business in NJ?