Hi can you please telll me if this is a good deal. This townhouse is located in somewhat of a non so popular area, but its walking distance from the beach as well as MTA. The are is picking up again, after the storm Sandy a lot of developers bought out the houses and build condo's. So the area has gotten rebuild, the current selling price for this property is 389,900. The reason its cheap is becuase its in lease desired location, but I could afford and the cash flow potantially is great. so here is all of the spec's of the property( info is based on what the agent had provided). This duplex is 9years old, i dont need to do anything in it. They two apartments are currentely occupied.
BUILDING Class: C0
BUILDING SIZE: 24’ x 37’
TOTAL SQ FT: 2,636’ (approx.)
UNIT 1: 2 BDR DUPLEX
UNIT 2: 3 BDR, 2 BATH DUPLEX
YEAR BUILT: 2006
LOT: 24’ X 60’
RE TAX 15/16 $3,028
ANNUAL EXPENCES: $4,700
CAP RATE: 10%
Would it be a reasonable question to ask the owner of this property, get all of their financials.
Absolutely I would first ask for his rent rolls and proofs of deposit. He can say anything he wants to entice the buyer, but without proof he can't back that up.
He might be saying the unit is collecting that much rent for the year, but what if one unit was vacant half the year?
If he can't provide those things then walk away.
thanks you for the response
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!