Posted by Mike P on January 11, 2003 at 24:31:50:
Hmmm…even at 200k it looks like only 9% cap rate…
newbie question - Posted by andweep
Posted by andweep on January 10, 2003 at 05:50:24:
My question:
There’s a building with 1)a business down stairs pays $800 per month, half of the ~$5,500 tax bill 2)two apartments paying a combined $1,500. Owner currently owes about $130,000 on the property and is “asking” for $500,000.
How can this property be reasonably acquired, with seller and buyer walking away happy?
Thanking you in advance for any and all help!!
BTW, I’ve been lurking for the past month and really like this site.
Re: newbie question - Posted by Ed Garcia
Posted by Ed Garcia on January 10, 2003 at 09:05:49:
Andweep,
This is an easy one. This is not a deal. Your income will not support your purchase price.
The seller is smoking ajax if he thinks that he’s going to sell the property for $500,000 with the income the property is showing.
This deal is not worth spending the time to talk about what ifs.
Ed Garcia
Re: newbie question - Posted by andweep
Posted by andweep on January 10, 2003 at 15:09:48:
Well that may explain the smile )
First off, I do not believe $500K is realistic, and maybe I’m wasting my/your/our time, but I want to try this, so let me change the question…what kind of price range is reasonable considering the income and the owner’s debt on the property?
Please note that I’m not what if’ing, and would like to see this happen…and of course the ajax smoker needs to move on his position a lot closer to $200K!
Thanking you again!