Help with Analysis of First Deal
Hello all,
I think I've found 'the one' and am in the process of making my first deal. The property is a 4 unit multi family, brick construction from the early 1900s. New furnaces and AC, no data on roof, plumbing, or electrical. Comes with off street parking/ parking lot. The unit could use cosmetic upgrades or interior rennovation in the future, and I plan on rehabbing and improving. There have been what appear to be minor interior improvements maybe 15 years ago or more, so I think there is solid value add potential. The area is not primed for high end rentals at the moment, more of a time will tell situation.
Current ask is $98k, but a few offers are in already. I am trying to decide on a feasible max for my escalation clause and would appreciate your input. The building is currently fully rented making $2500 a month and no matter how I run the numbers it looks excellent. I've set a tentative limit for the escalation clause at $120k. As an financial absolute max I would be able to offer $200k. I would love your advice on where to set my limit!
Thank you!
Most Popular Reply
@Mark DiRocco run it through deal check