in 2013 i bought a duplex from a guy who had over 200 units. I lived in one side and fixed them up as he was renting to section 8 tenants and the place was run down. the area has since gentrified and i bought in the 150's and it now appraised at 260K its a cash flow monster with both sides rented out im getting $2600 a month in revenue and total profit after everything is $1253 a month.
I want to get another property im looking for a four plex or a triplex, so i called the guy i bought the double from and asked if he wanted to get rid of anymore of his properties in his portfolio. He said yea, he said he would give me some properties at 90% of market value and if i was interested would set me up with a lender he works with. I am still new enough i dont know how to really analyze a deal. Is 90% market value a good deal? Does anyone have a good spread sheet or tips to help me analyze the deal he sends over?
Hey Benjamin, if you become a pro member you'll have access to their calculators for analyzing deals like yours.
Depends on what someone would consider market value...and there will be the point of contention when it comes to transacting. But if you had success on the last deal you purchased from him, perhaps he manages all his units similarly and there will be equal opportunity to add value.
Is you plan to blanket this property on the next one? So you can spread some of your equity over to the new acquisition without coming out of pocket?