BiggerPockets

I don't want to keep bothering you guys but: Can you help with your thoughts som background. Property 10 plex purchase price
3yrs ago $ 1,995,000 on the market 2009 for $ 1,449,000 partners want out ( break up ) I asked if the loan is assumable lender says yes must quilifie. To assume the loan balance $ 927,285.00 rate
of 6.95% 2yr loan amortized 23yrs. Ok here is what I know annual
gross inc. 100% rented $ 107640,000 5 % vac.and collections
$ 5,382 other n/a taxes annual $18,000,insurance $6,483,
management $ 5,382, annual maintenance $ 10,716, utilities
$ 2,490,miscellaneous pool & sces $3,298.Oper. Exp.= $ 46,369
Net oper income=$ 61,271. I'm useing $ 200 pr/dr replacement.
When I did my work sheet I used $ 950,000 assum by 7% for 30yrs I got $ 34,000 annual dept +/-. Now the monthly rent collected comes to $ 8,790 the monthly expen come to $ 3,415.50
this does not include dept service. Now the cap rate is in the bucket 5% and the way I figure the property's value is less than what is owed I would say $ 700,000 I really think they are feeding the dragon. I believe that is all my question is to you is I want your thoughts and wise advice.I thank you in advance and I need your help yesterday. Thanks again I appreciate all your help !!!

Frank, its the same object from last topic?

First: don´t take only 5% vac., 10% is the better way, for my calc I take even 15%.
Secondly: Go to http://www.a-l-a-g.com/realestate/clear.xls and fill out this excel file, then you have a better insight.
Thirdly: If you have a better insight then you see this deal is not so good for this price. My opinion.

-Uwe

P.S.: Jon was faster^^.

Frank,

Whats your maximal distance from you to a potential propertie? It gives some distressed Florida Apartment Buildings, is a Apartment Building with 40% may be 60% occupancy attractive for you?

-Uwe

Hi Jon: Just to keep you in the pipe line
the deal you analysed for me above.I e-mailed the agent I'm sure what might be going on is they are up-side down on their note if this is the fact I'm going to try a shot sale with the lender. They are very very motivated.They wanted to try and go for the gold that is why the property is way over priced. She admitted that to me. Let you know what happens I'm going to contact the bank. Thanks again for your grat advice !!

Frank,

With very little out of your pocket is an elastic term. Many a person means $5k and other means $500k, depending on his pocket ;).

Lets say: I saw now your $1,449m deal with an $927k assumable mortgage, that is $500k cash out of your pocket, price negotiable that much is clear. Is this the money what you can bring in a deal, then you should buy a propertie in cash for approx $500k. In your area gives many 10-12 units in this price range, distressed properties too. Please don´t answer what you will bring in a deal.

A propertie free of debt is the best. If you don´t have this money and you have really little money, then seek for a lease / rent to own propertie, it gives some in the Tampa area, but don´t begin with an multi million propertie.

-Uwe