So I have this Potential Million Dollar MultiFamily Investment property . Fully rented. Long term tenants. I'm very familiar with location and units. Seller does not want to do 1031 exchange. They are willing to carry at about 10% cash down + would also like to put a lien on a free and clear property worth $200,000 non owner occupied for the rest of the down. There is a 5 yr prepayment penalty. Cap rate is 5.9. What are your all thoughts on doing something like this?
@Annette Gutierrez , is 5.9 "normal" for the area, or a bargain, or, lower than normal (because of your low deposit)? How will the cash flow look, with you owing more than $1M on property worth $1.2M? ie. What Interest Rate is the Seller charging? Good luck...
Updated about 3 years ago
Edit: How will the cash flow look, with you owing $900k on properties worth $1.2M?