Owner Financed 8-Plex Deal Analysis
I'll preface by stating that the property for sale is actually two 4-plexes, next door to each other, being sold as a package.
Some details about the property:
- Appears to be a Class C+ or B property
- Each unit has two bedrooms/two baths
- Covered Parking
- Buildings are being described as being well maintained with some updating as well.
Some details about the financials:
- $360,000 for each building - ($720,000 total)
- Stated Gross Income ($63,442)
- Stated Net Income ($56,824)
- Rents ranging from $600 - $850 right now
- Average Rent per unit is around $660.
- Could imagine stabilizing all rents to $850 over the next 18 months, without much issues due to the local market and the area the property is in.
Some details about the owner financing:
- 20% down ($144,000)
- 6.5% rate at 15 years
What do you think about this deal??
This is my first question on Bigger Pockets, so please be nice :)
Thanks,