Please help review a 12 unit deal!

3 Replies

To start, I am sorry if the spreadsheet is hard to read. I am not sure how it will come out after I post. If it's hard to read then this entire post is useless and I will try to delete it.

 Anyway.. I feel that I am very knowledgeable in real estate and construction, but I am new to the rental side of real estate and this would be my first deal.

This is a 12 unit deal, involving two 5 unit buildings, and one duplex, all built in the early 70's. It is in a C to C+ area. The schools are good, but the town's population has been stagnant for the last 25 years. It looks as if the buildings have all been taken care of decently, but to the minimum degree. I haven't been inside any units yet, but from the outside I can see that they will all require new roofs and new A/C units in the near future. They are mostly brick, but have a small portion of B&B siding that needs a paint job soon too. 

The owner is 63, lives about 40 minutes away, and also has close to 30 units in his hometown of a B+ area. These are the only units he wants to get rid of and he owes nothing on them, so that is why I have structured my offers in the way that I have. 

Any insight will help and is greatly appreciated! Thanks!

Yes, this would be a seller financed offer. On all the loan comparable numbers, I added back in the down payment to arrive at my numbers. The asking price currently is 547K, but it has been for sale for 2+ years. I believe it was around 570K when originally listed.