My First Property

2 Replies

depends on financing...

conventional is usually 20 - 25% down payment so 400,000 on the low end.

Why are they selling?

Are they open to owner finance down payment or carrying a contract?

How much is the rehab if they are selling "as is"?

If the building is on the market real estate agents are usually all too eager to tell you that a building is in good condition an tell you all the nice and wonderful things about the building . However when you see " AS IS" on a listing it will usually means there are issues with the building that need to be addressed such as repairs, system replacements such as needing a new HVAC unit, Electrical work, leaking water heaters, roof is leaking, etc, etc. 

I would first visit the building with a general contractor to get an idea of what you may need to spend in order to bring the building back up to a good living condition. It might mean a considerable amount of money and time required but whatever that requirement is you need to add that to your cost of the building along with the purchase price, closing costs, holding cost, insurance, taxes etc. Add all these things up will give you a more true idea about the real cost of getting into the building as compared to the cost of financing only.