Need advice on my first property deal.
Can you please help me and advise me on this one.
I have a 28 unit apartment complex (mom & pop type) under contract for $185,000 and the tax assessment is at $250,000 and its market value is at $300,000. Fully occupied with a few vacanies. An old lady of 86 years old is managing the place and needs someone to replace her. She's a motivated seller and is begging me to buy, but I'm having trouble doing that at the moment. Please help me on what I should do before (God forbid) someone else takes this deal.
Can you please help me find financing? It's my first deal and I'm super excited about it. My plan is to live there and manage it myself for at least the first 6 months to set up a proper system in place, and then have a management company take over. Here are the numbers it produces:
1. The apartment is cash-flowing $12,000 - $10,000 a month in rental income. The operating expenses are close to $3,000 a month, with a net income of $9,000 - $7,000 a month clean cash. That type of cap rate is unheard of. All the lenders are telling me that it's too good to be true. But I have the bank statements to prove it. I've done my homework and got all the documentations and paperwork needed to know that this deal is solid. (I also have the title report, no liens).
2. The standard rent is $400 per studio (all 27 units are studios except the 28th one is for the landlord to live in, which has full bathroom, kitchen, living room and bedroom).
3. It was built in 1924, brick building, 3 stories - "a rail-road hotel" type, if you know of those old style apartments? And yes, it has ****-roaches and bed bugs, but that's okay, it's all manageable.
4. Can you please help me purchase this apartment? It's located in Klamath Falls Oregon.
5. If you can't do it, do you know of any investors that would be interested? Can you help me purchase it in any way, shape or form. Really need your help on this.
Thanks a lot, highly appreciate you!
- Viktor