Potential First Deal- Looking for advice
Hello,
My first post, but I have greatly appreciated all the knowledge I have gained from bigger pockets, forums, podcast, etc in the six months since stumbling upon it. My brother and I are new to the multi-family residential world but have caught the bug and have been doing research via bigger pockets and other avenues for quite a while. We have recently been in talks for a multi-family property, I have listed some of the specifics below and was hoping some folks would break things down and let us know their thoughts on the deal. Our goal would be primarily for buy and hold cash flow. Thanks in advance for all your help and advice!
43 total units for 1.8 million- Northeast Ohio, and hour from Pittsburgh and an hour and half from Cleveland
- 6 six-plexes and 1 seven-plex
- C to C+ properties in a B location
- Buildings will need roofs over the next 5 years, but no other major structural issues
- It appears to us that rents are at fair market value for the area, so there would be little room to adjust them up
- Built 1988-1990
- 27 units are one bedroom, 16 units are two bedroom
- Walking distance to several nice restaurants, gym, fast food, bank, multiple other commercial businesses. Large grocery store within 1 mile. State park with 36 hole golf course, and walk/bike trails within 1 mile.
Total Asking Price is 1.8 Million
Monthly income= $30,135
Monthly Expenses (excluding debt service)= $15,003
- Would be looking at conventional financing of 5.25% over 25 years with 25% down
- Owner would also be open to seller financing