Quad Plex Up For Grabs. Will Cash Flow 600 per month, 20k down to assume

I'm currently working with a distressed owner who wants to get rid of these units. He left them with a management company who never marketed or took care of the units in El Paso, TX. These are right next to Fort Bliss where soldiers are in constant need of housing.

Details:
*4 one Bedroom units which will rent out between 350-400 each
*77k pay off left on loan, you will just take over payments of 690 after 20k down.
*Needs 7k of roof repairs and touch ups
*27k total to get up and running

If any more details are needed please ask

Edited: 06/26/2010 at 08:57AM

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost Jul 14 '09, 05:10 AM

Sorry guys and gals.

Forgot to add that utilities are paid by tenants.

Jesse

Edited: 06/26/2010 at 08:57AM

Corey Demuth

Real Estate Investor · Queens, New York

356 posts
1450 Influence
2 Awards

Icon_minipost Jul 14 '09, 05:14 AM

Gotta say, I'm tempted. Would this be considered a subject-to ? Would have to find a decent mgmt company though which is hard since I'm not in the area. Hmmm time to look up the price of a ticket to tejas...

Edited: 06/26/2010 at 08:57AM

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost Jul 14 '09, 05:23 AM

Corey,

Exactly. A sub2 is what this deal will end up being.

If you're in need of a management company, I could connect you to one of my contacts. They're as good as it gets here.

Btw, I was a tad aggressive with the repair estimates. My roofer said he would do the work for 5k.

Edited: 06/26/2010 at 08:58AM

Corey Demuth

Real Estate Investor · Queens, New York

356 posts
1450 Influence
2 Awards

Icon_minipost Jul 14 '09, 05:30 AM

Let me think on it. Do you have pictures? I'll email you

Edited: 06/26/2010 at 08:58AM

Nick J.

SFR Investor · Scottsdale, Arizona

2806 posts
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21 Awards

Icon_minipost Jul 14 '09, 05:47 AM

this isn't a Sub2 deal when you have 'down payment' and 'assume' in the same sentence.

If that 20k down is to cover assignment fee's and possibly catch it up current if it's behind then that's something you should consider disclosing.

Is the property currently vacant?
Is the property current on payments?

Edited: 06/26/2010 at 08:58AM

Eddie Ziv

Real Estate Investor · Studio City, California

1803 posts
12555 Influence
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Icon_minipost Jul 14 '09, 05:59 AM

I always ask: "If it's so good, why is it so bad? " Meaning. If that was a distress property where it was bough high, no cash flow and is about to be foreclosed on, that would be one story. But if you need to add down payment on top of an existing loan, this shows that there is something with the local rent market that is off. Also, I would be very careful with relying military installations for tenancy. Those guys are on the move constantly and if I'm not mistaken, you can not sue them for breach of contract. It could be different, if you make a deal directly with the military as oppose to a contract with an individual tenant.

Edited: 06/26/2010 at 08:58AM

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost Jul 14 '09, 06:02 AM

Property is vacant, as I said in my first post, the roof is damaged and the management company didn't do jack.

The 20k down will cover back payments, closing, and assignment fee split between a partner and me.

Edited: 06/26/2010 at 08:58AM

Nick J.

SFR Investor · Scottsdale, Arizona

2806 posts
27916 Influence
21 Awards

Icon_minipost Jul 14 '09, 06:09 AM

Originally posted by Jesse R

The 20k down will cover back payments, closing, and assignment fee split between a partner and me.

That's not unreasonable. I wasn't trying to give ya a hard time, I just think you should mention that from the start thats all. Layout all the numbers so that potential buyers know the real deal.

Have you considered posting it here on BP in the property listing section and include pictures so that we all can see it?

Edited: 06/26/2010 at 08:58AM by Nick J.

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost Jul 14 '09, 06:11 AM

Originally posted by Eddie Ziv

I always ask: "If it's so good, why is it so bad? " Meaning. If that was a distress property where it was bough high, no cash flow and is about to be foreclosed on, that would be one story. But if you need to add down payment on top of an existing loan, this shows that there is something with the local rent market that is off. Also, I would be very careful with relying military installations for tenancy. Those guys are on the move constantly and if I'm not mistaken, you can not sue them for breach of contract. It could be different, if you make a deal directly with the military as oppose to a contract with an individual tenant.

Nothing wrong with the rental market whatsoever. As a matter of fact I would go as far as saying that el paso is flourishing. Read up on BRAC and all the money and changes it brings to el paso.
The city doesn't depend on fort bliss though. El Paso has a population of 500k plus not including all the illegals and borders mexico and new mexico.

Edited: 06/26/2010 at 08:58AM

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost Jul 14 '09, 06:14 AM

Originally posted by Eddie Ziv

I always ask: "If it's so good, why is it so bad? " Meaning. If that was a distress property where it was bough high, no cash flow and is about to be foreclosed on, that would be one story. But if you need to add down payment on top of an existing loan, this shows that there is something with the local rent market that is off. Also, I would be very careful with relying military installations for tenancy. Those guys are on the move constantly and if I'm not mistaken, you can not sue them for breach of contract. It could be different, if you make a deal directly with the military as oppose to a contract with an individual tenant.

Edited: 06/26/2010 at 08:58AM

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost Jul 14 '09, 06:26 AM

Originally posted by motiv8td

Originally posted by Jesse R

The 20k down will cover back payments, closing, and assignment fee split between a partner and me.

That's not unreasonable. I wasn't trying to give ya a hard time, I just think you should mention that from the start thats all. Layout all the numbers so that potential buyers know the real deal.

Have you considered posting it here on BP in the property listing section and include pictures so that we all can see it?

No problem nick. I do my best not to seem sneaky or conceal any important details.
I never thought about posting the deal in the properties section. I don't think it'll be necessary. Just trying to create another BP success story. If nobody picks it up here I'll just pass it along to my local buyers.

Edited: 06/26/2010 at 08:58AM