Updated almost 17 years ago on . Most recent reply
Please Critique this deal
Hello everyone. Thanks in advance for reading my post.
I've found a 3-unit property in a small town. It's listed at 99k and it's rents are listed as $1,500 plus all utilities except water and trash. I haven't looked inside, but I've talked to the tenants when I drove by and they said it's "nice"...roofs look good but no idea about furnaces or foundations. Obviously, I'll check it out thoroughly before doing anything.
I ran the numbers and here's what I've got...
At a 90k PP I've got my PITI around $750 on a 30 at 7%
I've got a 20% dp of 18k
I put the numbers into the Prop. Analysis tool on BP and it spit back like $424 after tax cashflow. However....
The rub is that I've got to finance the dp with an existing HELOC on my home...a risky endeavor that I've asked about once on this forum already...so I'd be paying debt service on the dp as well.
I'd love thoughts on this. Please poke holes in it...I'm busy as heck, but I don't want to miss a good deal (this is the best one I've found in my area in a LONG time).
Thanks