"Financeability"

[Andrew L.]

I've got a three plex I am looking at that is $44k and generates $1800 in gross income monthly. Long term tenants. The person selling is a wholesaler and rehabber, not a landlord. The plex is in need of deferred maintenance to the tune of $5k. The subject property is on the bad side of town. Will a bank touch this?

[Will Barnard]

banks, i.e. conventionally financing will likely not touch loans this small as there is not enough profit in them. They would finance such deals if the loan amounts were higher. Now, you may be able to find a local small community bank that may do this for you, but likely, you would have to have an existing relationship with them.

From your posted numbers, it looks like a fantastic deal assuming the numbers are correct. For 3 doors, you are getting $600 per door and at only $50k for acquisition and repairs (I would bet the repairs are higher), you have a tremendous rent to purchase ratio, to the tune of 3.6%. Are you sure those numbers are correct? Finding a deal with such margins would be considered a home run in my book.