NJ Commercial Property Dilemma
Hello Everyone! I've been on BP now for almost a year and have posted some suggestions but this would be my first question on the site.
I was wondering if you guys could give me your opinions/analysis on a comm prop i found in NJ recently. For the past 2 years I have been trying to enter the commercial real estate market but either i find something good and someone quickly out bids me or the listing price is insane. Sadly this seems to be the norm here in Jersey.
But luckily i recently found a property that might work. PLease let me know if you guys think these numbers are a little off or if Im missing something. This info was provided by the Seller.
Sale Price 1,199,000.00
Income Monthly Annual
8 units (8,000.00) and 2 retail (3,500.00)
Monthly rental Income 11,500.00 138,000.00
Expenses
Taxes 34,000.00
Insurance 5,000.00
Utilities 3,000.00
Repairs 6,000.00
Vacancy: 8%(rounded to 11k) 11,000.00
Total 59,000.00
Net Operating Income 79,000.00
Cap Rate 6.5%
Cash-on-cash
Down Payment 30% 360,000.00
Amount Financed 70% 840,000.00
Monthly payments / 25 year amort @ 4.6% (4,716.80) x 12= 56,601.60
NOI 79,000.00
Less Debt Service (56,601.60)
Cash Flow per Annum $22,358.40
My questions are: Is this even worth pursusing or do you think the asking price is too high? IM hoping to be able to purchase it for $1.1 if im lucky.
Also the apartments in the area would not be a problem to rent but the two retails are what I am a little worried about. Thats why I put the 8% vacancy.
Let me know what you guys think Thanks