Garage investment
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.