Investment Property Deal Analysis - Lakeland, FL

[Jason Abbott]

Here's the deal, it looks good on the surface, what am I missing?

List price: $260,000 (will negotiate off this)

8 total units/Avg rent is $525

C class property

100% occupied with long-term renters

[Doug Merriott]

@Jason Abbott what is the actual breakdown of the units? Rooms, etc... Location? Have you toured the property? Have you run the full numbers?

If you finance the property it will be a commercial loan, which I like because it runs off the income of the property. Local lenders that I have spoken with are looking for 25-30% down with 3 or 5 year balloons, and rates just slightly more favorable than what Brady pointed out.

Even better would be if you could get the owner to carry the financing. Could be a win for him on the tax front and a win for you if you could negotiate it close to 5% and keep it that way for a large number of years or perhaps the duration of the loan. Perhaps the owner does not need $50k lump sum, you would need to find his needs and then come up with a solution that works best for both of you.