haaaeeelllllppppp!!!!!!!!!!!!!!!!!
ok,
numbers!!!!! first let me give you numbers
(karla i hope you're listening)
$450k = asking price
$6000 = Rent roll = $7200 annual = $720k
Here is the sweet deal... (you thought that was it huh)
The property ALREADY has 100% occupancy, so the rent roll is as is right now. From what the guy tells me, no dead beats, good paying tenants.
$50 per unit = $300mth = $3600year
budget = $500 year
misc = $500 year
repairs = $2000 year
water = $800year
taxes = $2000year
heat = ? est. $3600 (six months)
insurance = $2000year incl liability
this all adds up to about $15k annually
mortgage on a property like this is $2850month = 34200year
So 15k plus 34200 = $49,200 annually
Rent roll = est. $72,000annually
net = 22,800 or $1900month cash flow
how's my math so far?
did i miss anything?
what would be my cap rate?
However, he is gun-ho about getting proof of some cash....not a problem, i'll show him some (notice i said some....$16k)
My question to you is do i go with a hard money lender and get the deal....later on (maybe six months) go to traditional loan?
Or should i go to a traditional loan now?
Or should i seek an investor to work with?
haaaeeelllllppppp!!!!!!!!!!!!!!!!! is not a panic button.....just excitement...
i luv this stuff....you know.....the stuff that life is made of....