I beleive they are over priced, I am planning on negotiating something acceptable or walking away. I have an accountant that I will use to review the numbers. Will hard money work if I negotiate a low enough price?
I have found a property in an up and coming area where they are asking 1.6 million. 24 units that bring in 12,500/mo. after expenses. The owner has been trying to sell for 4 years off and on. I beleive he would take less. He also has a 13 unit for $354,000, brings in $4,775/mo after expenses when fully rented[section 8]. I would like to buy and hold the 24 unit property. I am looking for financing ideas. I have talked to a lender who will do an 80% loan @ 4.625[3 yr fixed] or 5.25[5 yr fixed]. I was considering making an offer on both and trying to flip the 13 unit to get some of the down payment. Maybe the seller would hold a little paper. Will a lender do 100% loan if I negotiate the selling price down to 80%LTV or less???
Clint, if you have no experience with rentals, a bank will only do a 70ltv 15yr. amort. with 5 yr. balloon; unless you have alot of true assets (such as 750M+). ANOTHER thought, at the rough gross rents/prices these properties are to expensive, if you can get a loan, you’ll pay to much, and might get in trouble. I suggest starting out with a smaller property first (du or fourplex). Remember walk before you run.