Found a Deal...Lacking the Capital to Execute.
Hi guys,
I'm an new investor here in North Dallas and I've recently been looking for duplexes to buy and possibly house hack with or simply buy & hold. The opportunities have been rather sparse, however, I recently stumbled upon several similar duplexes being sold on the same street. Each one has been nearly identical, 3 bed 2 bath on each side 2600 sq ft total. I was able to get ahold of the seller and it turns out he is trying to unload quite a few on this street that he has bought over the years in order to do a 1031 exchange.
Each duplex he is asking $214k and at that price he still has 4 left that he hasn't even put on the market/MLS yet. They are currently renting for $1095 for each side but could easily be rented for $1195 (several others on the block are already at this price). This puts each property at an ~7.% cap rate as-is if I paid the asking price and over 8% cap rate with the expected increased rents. Both those cap rates include taxes, insurance, vacancy, repairs, and capex. There is definitely lots of opportunity to decrease my estimates expenses and and increase rent prices. Not to mention I could certainly offer much less than the asking price if I came with cash and especially if I wanted to buy all 4 properties.
I've attached my spreadsheet that I've been using to analyse the deals and hope you will check it out and let me know if there is anything you think I might be missing. You can simply create a copy and adjust financing rates, expenses, buy price, etc. It is being ran as if I were paying 100% cash, however, I could get a much better return (COC over 15%) if I was able to finance these properties at 25-30% down.
Unfortunately, I only have about $25k in capital on hand right now. I'm looking for ways to make either one or all of these deals happen, be it crowd-funding, hard money, etc.
I'd love any and all advice on how to structure a deal like this (as I'm no expert). Feel free to message me for info on this if you'd like.
https://docs.google.com/spreadsheets/d/1Oqj74PxE7q...
Thanks,