Early 6-Plex Analysis

[Javier Arbelaez]

Hey BP,

Was hoping to get some help on a deal that I received through direct mail marketing. Still in the early stages of conversation but got some beginning information and wanted to see if this was worth pursing:

Asking Price: $550,000 (I already assumed that was too high, trying to figure out a reasonable price to offer)

Income: $4000 a month (believe there is potential for rent increase (waiting on specifics of each unit))

Expenses: $900 a month (Water, Garbage, Taxes, Insurance, Maintenance, Pest, & Septic) Self- Managed

NOI: $3100 a month

Cap Rate: 8.72%

Stable Tenants

Doesn't need major work

Good Area, Decent Schools

Questions:

1) What is a fair win-win offer?

2) What other information to ask for?

3) Financing Options that make sense for cash flow?

Thanks for any help!

[Javier Arbelaez]

Hey @Hadar Orkibi,

I am looking for Passive Investment Properties, mainly rentals.

I am hoping for $100 a door if possible.

I ran through the calculator and it does not cash flow at all with the current price. $450k seems like it will work but need to convince him to drop his price that low.