Would YOU do this deal?

[Bud Gaffney]

Hi BP family,

Would YOU do this deal?

7 units total (6 res, 1 comm. 1 building)

6 2 bed/1 bath. 1 1,000 ft2 comm. space (vacant)

$5,000 gross rents, comm. space vacant. (Rents under market value by ~$200/unit)

$450,000 Purchase Price

$40,000 Down

$410,000 owner financed @ 5%, 25 years. (no pre-payment penalty)

P+I = $2,396/mo.

Tax = ~$650/mo.

Ins.= ~$250/mo.

Water/Sewer= ~$300/mo.

Elec. = $100/mo.

CapEx = X/mo.

(Total ~$3,650/mo. w/o capex)

C+ neighborhood. Minimal repairs needed. Rents on the rise. Thoughts / Concerns. Thank you in advance!!!

[Eric Johnson]

This sounds like a calculator question. Not a fan of mixed use buildings that have a vacant commercial space, because those can be a pain to get a stable operating business in there that you're not consistently having issues with. The rest of your answer depends on what the building is throwing off in ROI and whether or not that's acceptable to you. We on BP cannot make that decision for you. GL my dude