All Forum Posts by: Account Closed

I've found two individuals that are selling a 29 house package deal about a hour away from where I live. Here's the number's I've come up with and some they provided.  It's a 60/40 split of non section 8 and section 8 housing.  Purchase price is 900k 

Gross Rental Income Yearly $211,000

Vacancy 8% $16,880

Net $190,000

Expenses Yearly

Debt Service $59,433     20% down, @5.5% ,amortization over 20 years, 10 Year Balloon

Insurance $15,000

Maintenance $20,000

Management Fee $16,000

Miscellaneous $5,000

Property Taxes $15,000

Total Expenses $130,433

Profit $59,567

Thoughts? I thought it looked interesting.

@Joel Owens Correct, the 4 DG'S were owned solely by my father and the three strip centers were owned by him and my mother until he passed. They divorced 4 years before his auto accident. We're not currently looking to sell the strip centers. Everything we own is in Alabama. I wouldn't be opposed to NN deals over NNN, if it's the right type of deal, as all of our current holdings are NN and don't you pay a premium for NNN's ? I want it to be business, it doesn't necessarily 100% hands off as I have the time to work it.

They were 5 year extensions. If we sold, I wasn't really wanting to buy another DG property. I've looked at fast food NNN, really like pharmacy NNN or some type of multifamily. My only experience has been with single tenant commercial and strip centers as we have 3 of those as well. So I'm a little hesitant on moving to residential.

@Howard Abell @Joel Owens 

@Randy E.  Thanks for the reply's. The percent rate on the current note is 5.50%. I've been managing them since 2012 when our father passed, they've been stuck in probate until now. (girlfriend of my father sued saying she was common law wife....she lost)  So I'm use to the day in day out type stuff, my sister has no clue as she's not been involved. Joel, I'd have to gather up my leases but I don't mind you looking at them, I signed extensions on two of them last year.  Back to selling and paying off the mortgage. I understand about putting the money to use elsewhere, but do I not end up better saving all that interest and put 2k a month in my pocket to reinvest later on? Assuming they bring enough and avoid a large tax bill. I suppose, I like the security of my primary residence being paid for is my thinking. 

My sister and I inherited. 4 individual commercial properties all leased to Dollar General. They have about 10yrs left on their leases NN. Rent is $16,500 per month. The loan payment is $12,700 ,roughly 1.5 million left on the note.  It balloons in December 2016, my sister wants out and I honestly would prefer to not be in business with family. I spoke with a broker he said they could bring anywhere from 2.3 to 3 million. I'm rough estimating, I could walk with 200-300k. I'm 24 years old and I love working with commercial real estate and me and my wife would like to start my our own real estate holding company one day. I also currently have a 300k mortgage on my house, I've considered paying it off  with the sale proceeds if there's enough and saving each month what I was paying in a mortgage payment. The interest rate on my mortgage is 4.75% with 29 years left.  After I've saved for a couple years we start buying up some properties for ourselves. Or do we use that capital to start buying now? Looking for advice and opinions! Thanks!

I looked up past taxes. At it's highest it was $1,600

The current owner bought it for $210,000

what price would ya ll go for ? Is the ground keeping not included with the property manager fee ?

Seller said property has been vacant for past 2 years until they purchased it and rehabbed it earlier in the year. So there's no data available. He is sending the tax notices over tomorrow.

@EdwardBurns @MehranKamari

I can get 20yr @ 5.5% with 60k down.

Payment without Taxes and Insurance $1,650.00