No rules right? OK how do I get this 1895 Apartment building?

8 Replies

OK so I have never bought a property and there is a 12 unit apartment building for sale nearby($448,000).  I have no money saved because I have been paying hard on some old debt.  Credit score is 725-ish, yearly income $24,000 working at Lowes.  At full occupancy, gross monthly rents would be $6445.  According to Trulias affordability calculator the monthly costs are $2,927.  
So how can I make this purchase happen?

@Earl Salisbury Jr Do you have any friends or family with an IRA? I was learning that they can take money out to loan it for an investment property and then you pay them back with interest and they would put it back into their account. Another option: Do you own a home you can do a line of credit on? Even if it’s not fully paid off?

Unfortunately, neither, that I know of and I really dislike the idea of asking anyone for such things.  

I will soon own a lake view lot 45 x 300 feet, but that is it. My buddy keeps saying they would do a signature note for a house but this is a little bigger than a house, LoL

@Earl Salisbury Jr is this a turnkey investment with tenants in place? Or is this a fixer that you will improve and then occupy? Or a combination? Any way you look at it, you'll need a good chunk of cash, probably to the tune of $100k - $150k. The question is, where do you find that cash?

Jason that is what is stopping me. The Trulia calculator figures a 20% down deal ($89,580) would end up with a monthly payment of $2,104 ($1794 principal & interest; $235 taxes, $75 insurance)
Tenants are in place but I don't know how many. Extensive remodeling in recent years, new windows, siding, etc. New roof & ACs in 2015. Located on our main drag, 12 units plus an office unit, I guess they are talking about the Lawyer office next to it. I'm still real estate stupid but I think this is a good opportunity. What say you?

@Earl Salisbury Jr forget trulia, you need a ton more information. Its going to take a lot of effort on your part to make this a reality. You'll likely need a partner of some sort or someone willing to lend you a large chunk of change. Then, you'll need to see the financials to determine real expenses and income for the property. You'll need to know CAP rates for the area so you can make an informed decision about what the property is worth. Once you have all the information needed to determine value, you can make an offer. There is a ton of due-dilligence involved in a property like this, because of its size and, more importantly, its age. I would suggest that you look for an experienced partner on this one. It'll make success much more likely.
@Earl Salisbury Jr The good news is you’re on the right track on paying down bad debt. The other good news is I commented on this saving you a lot of time, money and effort. I’m going to do this by telling you not to pursue this. You are going to need a lot of money to make this work and if you have zero it’s just not gonna happen. If you don’t know anyone with a lot of money then you reallt have no way to do this. I would focus on earning more money first before doing real estate. Then do a smaller deal to start and work your way up.
Originally posted by @Earl Salisbury Jr :

OK so I have never bought a property and there is a 12 unit apartment building for sale nearby($448,000).  I have no money saved because I have been paying hard on some old debt.  Credit score is 725-ish, yearly income $24,000 working at Lowes.  At full occupancy, gross monthly rents would be $6445.  According to Trulias affordability calculator the monthly costs are $2,927.  
So how can I make this purchase happen?

 You probably can't. Focus your attention on a more realistic goal. Start increasing your income & saving up a war chest so you have something to invest. $24k per year is nothing. Drive Uber, sell real estate on the side, anything. You need money to effectively build a real estate business.