All Forum Posts by: Mayer M.

Any idea why the current owners are selling?  Is it a buy and hold deal for you?  

Your biggest issue is one vacancy form the apartments has the building costing you money that month.  

I'll be interested in what others think... 

With what you provide here, I'd do the deal, however you missed a few things and I'd really need to know more about the 115 year old building before proceeding.

Your mortgage will be $2400 then add taxes and insurance to bring it to 3450, the utilities you mention make it 3575, then add the landscaping to bring it to $3825/month.

Rents are currently $5100 so you clear $1250 each month, which is good, but you forgot a few things.  

With a multi unit building someone has to clear the sidewalks and driveways for snow removal, someone has to mow the grass, someone has to replace light bulbs and tend to anything else that's in the "common" area.   Who's going to do that and what are you going to pay them.

Now for the big things.  How old are the HVAC systems.  Are they independent for each unit.  Who will maintain them, filters, gen maintenance, etc.  Before making your decision, assuming each has its own system, what would it cost to replace it.  Where will that money come from if its needed in month 3.

Plumbing, how many bathrooms, how old is that plumbing.  How easy is it to get to and work on in that building?  

Now for the biggest of all, and you'll have to dig to get this answer.  Assuming 5 years from now both commercial tenants leave, how "rentable" is your building?  How would you pay your mortgage if it was empty for 3 months.  

My multi unit building was built in 1902.  I gutted it before moving my "real job" into it and leasing the other spaces, so I had a new building when I moved in.  If i'd rented it the way it was, there would have been higher heating and cooling bills for everyone and I'm certain plumbing issues with those old pipes.

I'd love to here more about what you think on the things i've mentioned, and don't forget no matter what to tell us what you do.

Best of Luck.....G.T.