Need some advice...
I am needing to get some advice on possibly purchasing a multi-unit property. I found a property for sale in southwest ohio. The ad I read was around 2 years old and the agent that had it for sale is no longer dealing in real estate. It was listed at $60,000. According to the county records it was last sold in 2007 for $250,000. I think the ARV should be around $200,000. It has considerable back taxes due of around $40,000. I cannot get much info on the current owner other than an adress. I am hoping to work out a deal with the current owner to pay off the back taxes with an additional $10-15,000 to aquire the property. Now some property details... 8 - 4-BR apartments all in need of rehab at a cost of roughly $50,000. It is located in a decent neighborhood with many multi-family houses and apartment buildings nearby. All brick construction, 2 - 2 story buildings. HUD FMR for the area for 4BR units is $1045/mo. Looking at about $800/mo for all units. Gross rents per year are $76800. If I do all section 8 rentals could be as high as $100,000/yr. Taking into account vacancies, property management, and expenses, roughly $40,000 - $50,000/yr profit. To me it looks like a slam dunk deal, but as I am new to this, I am not sure. Does anybody have any advice for me before I try to make this deal happen?? Also, I may have a way to get the funding for purchase and rehab, but I'd rather not go that road if possible. Does anyone know the chance of getting a hard money loan or conventional commercial loan to do this deal?? I have very little experience, and almost no money of my own to invest.