Need help with apartment deal - Posted by keith

Real Estate Investing
1

Posted by Michael Morrongiello on April 06, 2005 at 21:12:29:

Keith:
If all four units are leased (100% occupancy) then $1,800.00 per month is coming in from rents.

Backing out taxes, insurance, an allowance for maintenance, managment (yes use a figure even if you do it yourself), any homeowners association dues, etc. - it would seem to me that this deal might “pencil” out ASSSUMING the financing the seller holds is long term and at the 5% rate.

If you can get in with 5% cash down ($8k) then the balance of $152K owner financed over 360 months @ 5% would have a monthly P & I payment of $815.97

Add the above expenses back on to that figure and see what type of cash flow is left. Ten decide if that is a good deal or not for you…?

Best to your success;
Michael Morrongiello

2

Need help with apartment deal - Posted by keith

Posted by keith on April 05, 2005 at 10:41:45:

There is an investor in my area who has a fourplex for sale.
Four townhouses, each with 2br 1.5 bth. All units are occupied at 450mth.
I spoke with him and he is asking 160,000.
He said that he would owner finance and hold the note at 5% and that the terms were up to me. I think he may be tired of dealing with tenents b\c he is selling his other properties as well.
My questions follow.

  1. Does this sound like a good deal?
  2. What terms should I present to him?