Massachusetts Deal Analysis
Hello Everyone,
I was hoping you all could take a look at this deal that I am looking at for a second time. We are not under contract and I want to make sure my math and my estimates make sense so I can go in with a strong position as what to offer.
I put the details in the google doc as its easier to display than in the posting section.
https://docs.google.com/spreadsheets/d/1Gi7HweJKvb...
Additional Non numbers information
- This would be my first property
- Yes there are cheaper places
- No I can't buy those as they are too far from my and my fiances places of employment (this one is already on the edge)
- Owner Revenue is us paying ourselves our current rent
- Would consider this a B property in C neighborhood
- Each unit has central air, W/D, & Dishwasher, all of which are considered luxury items in an apartment. Means premium rents for the unit sizes.
Facts & Assumptions
- Owner did major renovation approximately 5-8 years ago including roof, heating systems, water tanks, windows, and central air.
- 1BR units Heat is not separate, but has new energy efficient gas heater.
- No Comps are available
- In my opinion it is priced too high as if it was priced correctly, it would have sold, will attempt to push price down as I doubt it will appraise
- I believe the maintenance amount provided is artificially high due to inclement winter weather, we had record snow this year. Being a owner occupant means that I would do my own snow removal vs paying for it.
- House is over 100 years old
- First house I have found to cash flow in my search radius
- Using FHA or Mass Housing (similar to FHA) loan with a 3.5% or 5% cash down
- Have cash reserves above and beyond down payment
What do you guys think? Would you do this deal? Am I forgetting anything major in my cash flow calculations? My biggest concern with this property is that I don't believe the seller will budge on the price, which means it won't appraise, which means I don't qualify for the loan.
Thanks in advance!
Andrew