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
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