possible 1st deal

8 Replies

Hello all I was wondering if anyone thinks it's good idea to assume a assumable loan from a property cash flowing about 3k after all expenses?any ideas as to the best way to approach this owner who is willing to negotiate other than a sub to?

@Brian Jones Im assuming you mean $3K/year which is pretty tight. What are the rest of the income/expense numbers?

Make sure the loan really is assumable.  It is rare these days unless the loan was originated a long time ago.  

Confirm all expenses via tax returns and income from deposits and rent rolls.

When you say expenses does that include debt service?  Check to see their loan is something you can afford.  If it is cashflowing 3k per month it is a larger apartment complex so you will really need to check the condition of the property.

Sean Ploskina, Oceanside Properties | [email protected] | 757‑581‑1488

ok Gentlemen @Rob Beland @Sean Ploskina @Jeremy Pace We have a assumable VHDA loan with a balance of 1.1 million asking 1.5 million sales price with locked interest of 5.22 % NOI of 177198 Total expenses 89262..you have a debt service of 115536..capital reserves of 7250..loan payment of 3k a month..95% vacancy 2014 year was income of 218657 total expenses 90738..

Is your yearly debt service the 115k?  If so what is the 3k per month loan payment.

I am assuming you meant 5% vacancy and 95% occupied

If your 2014 income was 218k -expenses 90k= 128k- debt service 115k=13k yearly cash flow so closer to 1k per month cash flow

Sean Ploskina, Oceanside Properties | [email protected] | 757‑581‑1488

@Sean Ploskina I would have to email you the entire financial page cause im sure I screwed up something while writing