Brand new to Multi-Family Investing - Potential Deal
Just found this property for sale on craigslist and spoke with the seller.
Owner/Landlord moving out of state and needs to sell (2) Four-Plexe's. All units rented. Gross monthly rents are 3,200 a month (rents are low for the area and can be raised). Seller owes 127,500 on each Four-plex. Loan is blanketed on both properties and is assumable. Current assumable loan monthly payment is 2,100 that includes P&I and taxes only. Insurance, gas and water for only (1) unit adds an additional 310 to the monthly payment. So total monthly payment, including utilities for one unit is 2,410.
This deal sucks in my opinion but the assumable loan makes this slightly more attractive. Also, rents can definitely be raised in each unit from between $25-$50 when these leases expire. Also, once acquired, I can try to find some more favorable financing terms to lower the monthly payment. That (1) unit gas and water payment will also be removed immediately at lease end.
He also wants $9,000 to assume the loan. - Wouldn't pay him anywhere near that.
What are your thoughts on assumable loans and what they have to offer a deal?