Your opinion please - Posted by BenNY

Posted by Chuck on October 20, 2004 at 22:54:38:

Calculate your total debt service (both loans), subtract that from the NOI… pray you have no non-pays, vacancies or unexpected expenses… and then come back and tell us what you’ve learned.

Your opinion please - Posted by BenNY

Posted by BenNY on October 20, 2004 at 22:10:41:

I would appreciate any opinion on this deal. Do you think this is a good deal or not? Thanks in advance.

4-family in upstate New York.
Detached, brick building, good condition.
4 units, I bedroom each unit (3 units rent for $450, 1 unit rents for $475)
Property is owned free and clear. No mortgage
Tenants pay own heat, electric, and gas

Sale Price: $130,000.
Total Rental income: $21,900. per year
Taxes: $4,000. per year
Insurance $500. per year
Water/Sewer $1200 per year
Electric for common area $50 per year
NOI: $13,960 (including a 10% vacancy rate)
CAP RATE: 10.7%

FINANCING: (1) Seller will get $80,000.00 cash at closing (I will get a mortgage for $80K). (2) Seller will hold a balloon note for $50,000. at 4% for 7 years.

What do ya?ll think???..Thanks a bunch

Re: Your opinion please - Posted by ray@lcorn

Posted by ray@lcorn on October 23, 2004 at 14:48:50:


Read this article:

Then tell me what you think.