Analyze this....
Here's the deal:
Actual Proforma
12 unit asking price 480k
Other income 1800
Rent Roll 65820
Adjusted gross 62529
Current Taxes - 12076
Insurance - 3149
Water - 1455
Maitenance/ repairs 4700
Electric - 1535
Maintenance - 0 (Cheaper rent in exchange for management $150 instead of $575)
I have only seen the outside of this property. Itr is an old school converted to a multifamily. Rents are low. The building has a new roof and there is room for an additional unit to be constructed. The NOI is not steller, but the future potential seems to be there Future rents should be 5250 for the 10 one bedrooms and 600 for the 2 bedrooms.(2 units) Each tenant pays own utilities. Assuming these owners costs are accurate what do you think the purchase offer should be?
What kind of financing ? 20 % down 10 year @ 7.5 ...etc..... All input will be greatly appreciated:)
I just got the owner's proforma and will be doing my own projections with the mised items