All Forum Posts by: Michael S.

Here is another one. What selling price would make this a good deal?

Asking 350k 12 units
Scheduled Gross Income: $72,000
Vacancy (5%):$3600
Effective Gross Income: $68400
Maintenance: $7200
Taxes: $12,600
Insurance: $1,200
Other Expenses: $10,600
Total Expenses: $35,200
Net Operating Income: $36,800/12=3066.66

350k@8% for 20 years=$2,927.54
balance=139.12/12=11.59 per unit not stellar by any means, but in the black.

Thank you for pointing me in the direction of his posts. I will research them.

It shed some light on the situation. Thank you

Mike, I know ther is alot missing, can you tell me what exactly is in your numbers? You calculated our numbers using no money down, That is a great way to buy if you can, I don't think that is an option for me yet. I am ready to put down upt 20%, just not at the asking price.

Here's the deal:

Actual Proforma
12 unit asking price 480k
Other income 1800
Rent Roll 65820
Adjusted gross 62529

Current Taxes - 12076
Insurance - 3149
Water - 1455
Maitenance/ repairs 4700
Electric - 1535
Maintenance - 0 (Cheaper rent in exchange for management $150 instead of $575)

I have only seen the outside of this property. Itr is an old school converted to a multifamily. Rents are low. The building has a new roof and there is room for an additional unit to be constructed. The NOI is not steller, but the future potential seems to be there Future rents should be 5250 for the 10 one bedrooms and 600 for the 2 bedrooms.(2 units) Each tenant pays own utilities. Assuming these owners costs are accurate what do you think the purchase offer should be?
What kind of financing ? 20 % down 10 year @ 7.5 ...etc..... All input will be greatly appreciated:)

I just got the owner's proforma and will be doing my own projections with the mised items

I have many questions regarding commercial financing. Here is my scenario:

I currently own 2 propertries, primary and a 2 family investment. The 2 family was purchased cash and I used my credit cards to bring up to date and to renovate. The end result of using the credit cards was that I currently have high balances and my 720 fico went down to 660. I am about to close on sale of my primary which will give me funds to pay down my credit card debt too ) and leave me with 250k to puchase a new primary and an investmet property.(How long before my credit goes back up?) I plan on using about 100k for a commercial property. I found a 12 unit (Asking 480k) that I am interested in. I am in the process of verifying income.I would like to purchase this property as a corpporation and am curious as to what is the lowest down payment I would be allowed to do? What kind of down payment would be typical for such a deal. My regular lender, local bank is willing to finance it, but requires that i put down 25% and this loab will show up on me verses my corp. Can I avoid having it show up on my report? I don't want it to effect my borrowing ability for my future primary, also in the 500k range. What would be my best financing options?