Updated over 3 years ago on . Most recent reply
Looking for input on potential first deal
I have been looking to get started in my real estate investing journey. Recently ran into a long time friend. He proceeded to tell me he was just considering a potential deal on a private commercial sale and asked if I wanted to go in with him. The deal looks pretty good to me, but was hoping for some input from the community. These numbers came directly from the seller as he personally knows my friend.
Selling price $350K (we are hoping to get him down to at least 325K)
Down payment 20-25%
total rent (3 units) $4,500
Taxes ~$1,000/month
Insurance $200/month
CAM $500/month
Emergency fund $300/month
The building could use a good refresh from what I hear (going this week to look)
Seller has offered to have a new boiler installed
New roof might be needed in 5-10 years.
What do you guys think? I am excited to get started on this journey.
Most Popular Reply
Hi John! Congratulations on finding this deal! On first pass this looks like it should be a good deal! My top recommendation would be to make sure you keep an emergency fund from day 1 to handle larger expenses if you think it is going to need a refresh. There have been a few podcasts recently about vetting multi family deals, here are links to them.
https://www.biggerpockets.com/...
https://www.biggerpockets.com/...
These should be really helpful to transition from the spreadsheet analysis to your underwriting process.