BiggerPockets

We have a chance to purchase a 10 car garage unit. The elderly owner is asking $100K. Garages have new roofs and doors. No utilities, and a small yard to mow. 9 are rented for $100 a month, 1 is empty.

Seller paid $15K 25 years ago, and has no mortgage. Taxes are $1500 a year, insurance about $400. The only comp I could find was three years old for a 13 unit garage, with utilities, sold for $93K.

My husband and I were considering an opening cash offer of $60K (ballpark), then refi to get the cash out. We would only be able to get about 70% out, I'm thinking.

We are also trying to buy a house for ourselves as a primary residence. Since we will need 20% down to buy a house, would this deal make sense? Will our debt ratio be too high to get a mortgage for our future house? We currently have 2 SFR rentals.

If we had to finance the garages, how likely to get a loan for $50K or so?

Thanks for any feedback.

In addition to.

I thought about seller financing, but the sellers are in their early '70s I believe. I can ask. And yes, it's in Trenton.

Hey Robert, I saw you posted about a house you purchased in New Brunswick...how is that going for you?

I have a lease I use for spaces at buildings and for surface spaces. I can send it to you but you need to have it read by a lawyer or have them draft one.

I'm still considering this deal. I last spoke to the owners 6 months ago, an elderly couple that said they didn't "need" to sell. Their adult children don't want the property, they want "their" money. They are not marketing the property, just a small sign on it.

The rents are mostly paid with cash, no leases, no copies of rent checks. I've talked to a few lenders, and they won't finance it, at least not at reasonable terms.

I'm considering asking for owner financing, perhaps offering $60K with 30% down, 4% interest for 5 years or something like that. I'll also ask the owner if they have a Schedule E to prove the rental income. They've owed the property for 25 years and owe nothing.

I'd appreciate any suggestions on how to structure an offer, thanks!

I don't know either. They're in their late 70s, and they pick up the rents at the garages in person, they say. I would definitely insist on either MTM leases or applications from all renters. I'll give them a call and see what they're considering. Thanks!