6 unit- potential 1st deal
I'm looking at this 6 unit in a pretty good area that I think is a pretty good deal. It'd be my first deal though and I would likely need a partner help me with down payment/ managing the property and getting a commercial loan.
Purchase: 330K
Annual Rent: 62,000 Mortgage: 17k
Vacancy: 6,000 Taxes: 7,000 Insurance: 3,500
Management: 6,300 Maintenance: 6,300 Utilities: 3,600
Reserves: 6lik,300
I would be managing it myself and maybe with a partner so that 6k would be saved for capital exp, even though the property has been maintained and looks to be rehabbed in the past 5 years. Neighborhood is a B area. Thoughts as a potential 1st deal? I'd likely try for a FHA commercial loan unless I can find an experienced investor that could provide more options to leverage this deal
Plusses are the area, a better area may lead to a better tenant pool. Basic numbers are ok but not specific enough to judge. what is the vacancy/ what are the size of the units? is that type of unit in demand for the area? why are the owners selling? for the numbers are the expenses actuals? are the rents at market value? anything needs replacing now? what utilities do you pay?
#1 All Forums Contributor
- Investor
- Virginia
It's not a bad deal. My recommendation is to start with something you do not need a partner on. Not only will you be dealing with possibility of six tenants but also a partner. That can be a lot to handle for your first deal.
