Help please - St. Cloud, MN Minnesota
Hey everyone,
PLEASE CHIME IN! I need help with a potential deal on the table, ANYTHING helps
I am working on a non-MLS deal for an 8-unit property in St. Cloud, Minnesota (MN). I am from the Twin Cities and lack a lot of knowledge of the area, fair market rent, major employers of the area (if any) and etc..
**We have yet to settle on a purchase price but I will include all other details so far.
It is an underperforming 8 unit on 6th Ave S (within walking distance) to school. All units are 4 bed / 1 bath with 10-12 designated parking spots. It has been underperforming
- Under market rent ($500-$800 per unit)
- Higher vacancy (25%)
- "Families" packed into the 4 bed room w/ smoking and etc.
The seller is looking to sell this property and it is a non-MLS deal currently. It is surrounded by student housing and is on campus within very close walking distance. My goal on this property is to get it back to it's performance and rent it out at FMR (which I don't know... $225-275/room per student)
Here are some of the financials -
Ask: 520k
Monthly gross rent: $5000
Property taxes: 7k
Insurance: 2.5k (for me)
Gas & electric: 3.5k
Water: 1.5k
Rents should be at least $6400/month or $7200 depending, (possibly higher?) on price per unit. I think there is a huge value add here, and the seller is willing to sell for less (425k? 450k?) *Remember his ask is 525k*.
Financing options : 10% down 10-20 year CD option (which I find of HUGE benefit).
Please assist and throw everything out there:
What are the average price per bed room?
What do you know about FMR?
What would you offer?
Is the competition high for student housing?
Let me know if I left out any details.