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Real Estate Deal Analysis & Advice

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Jay L.
  • Realtor® with Keller Williams
  • New Orleans, LA
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Owner Financed 8-Plex Deal Analysis

Jay L.
  • Realtor® with Keller Williams
  • New Orleans, LA
Posted Aug 31 2015, 00:20

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,

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