Dec 16 '08, 05:56 AMHello
Up until now I have been buying, rehabbing and selling. (mostly SFH) I just closed on my first rental property I plan to rehab and hold. As it turns out a REO came on the market two buildings down at the same time I was in the final stages of the short sale of the one I closed on. I put and offer in not expecting it to get approved and low and behold, it did. I close on the second building next week. (it in much better shape as well)
The numbers look like:
Building one, 3 family flat. Each floor is 1000 sq ft +-. When finished all units will be 3 BR. I plan to put 2 sets of coin washer/dryers in the basement of this building. (the tenants from the other building can walk over.) Neighborhood is not great but definitely not a combat zone, Housing rate is about 950 for a 3 bedroom with separate utilities. Gross Income on both buildings should be 2850/month plus laundry income. Owner pays for water and sewer, tenants pay the rest. (heat, electric and hot water)
65K Purchase price including points and all fees.
100K Rehab cost including holding costs.
165 total paid for with hard money loan (4pts @ 12%)
Building two floor plan is almost a clone to building one but in better shape.
85K Purchase price including all points and fees.
80K Rehab including holding costs.
165K total. Paid same as above.
Plan is to refi out of the hard money loan in 6 to 12 months. I assume if the bank will accept even 75% LTV and 75% of income I should not have a problem getting 100% financing. Last time I checked I had a 730 FICO score.
What do you folks think?
ARV is 265K on both buildings. (appraisal done by conservative appraiser for hard money lender)
