Looking for some advice on a potential deal
I am looking at a 3 unit 3000 sq. ft. (potential for 4 or 5) priced @ $135,000. 2 of the units need updated, potentially just gutted. The siding will need to be painted and eventually changed to vinyl siding along with 28 new windows. I offered $105,000. Seller came down to $120,000 and won't budge off of that price. I can't decide if I should go ahead and give them the $120k or move on. Currently the 3 units rent out for $500 a pc. If updated they should easily rent out in my area for $650 to $750 a month. I think that @ $120,000 it is still a good deal and would like to do a buy, rehab, rent and refi. Just looking for some advice. Thanks!
@Wayne Hampton I plugged this into our cloud-based analyzer and here is what a BRRRR might look like. Seems like it'll cash flow and isn't a bad deal at all. I didn't have all of the variables so this might be off, but you can take a look and tweak. Hope this helps!
Hey Wayne,
If you were to do typical investment financing with 25% down at 120k while keeping the 3 units at $500 a month it will still cash flow pretty well for you (roughly $600 a month depending on the rate you choose to go with). Seems like a pretty good deal.
Quote from @Jim Flynn:This would be the first rental. I have demoed a foreclosure property and rebuilt about 3 years ago.
Quote from @Wayne Hampton:How many projects have you done to date.
I am looking at a 3 unit 3000 sq. ft. (potential for 4 or 5) priced @ $135,000. 2 of the units need updated, potentially just gutted. The siding will need to be painted and eventually changed to vinyl siding along with 28 new windows. I offered $105,000. Seller came down to $120,000 and won't budge off of that price. I can't decide if I should go ahead and give them the $120k or move on. Currently the 3 units rent out for $500 a pc. If updated they should easily rent out in my area for $650 to $750 a month. I think that @ $120,000 it is still a good deal and would like to do a buy, rehab, rent and refi. Just looking for some advice. Thanks!
Quote from @William Harvey:
@Wayne Hampton I plugged this into our cloud-based analyzer and here is what a BRRRR might look like. Seems like it'll cash flow and isn't a bad deal at all. I didn't have all of the variables so this might be off, but you can take a look and tweak. Hope this helps!
I appreciate the input from everyone. Looks like the analysis that I did myself falls in line with everyine else so thanks for the confirmation.