Rental Property Investor · Gig Harbor, WA · Member since 2015 · 88 posts · 43 votes
Hello!
I'd like to get some experienced investor's input on this deal please!
My husband was born & raised in Juneau, Alaska. We are looking to move back, and plan on purchasing a multifamily we can live in and rent out. The duplex can easily be turned in to a triplex (metered for it), which will add value and generate more income. We plan on adding elctric heat in leu of the oil heat it has.
This deal analysis is a very conservative estimate as it figures as a duplex with oil heating (very expensive). It looks as though it is a good deal and we have offered $425 on it, listed for $435 with another offer in - we don't know what that is.
Any thoughts, comments or concerns from more experienced investors? This will be our first multifamily investment. We hope to learn a lot from this and continue to invest.
Wow, you are going to be very highly levered, 3.5% down. I'm curious, have you already been quoted for a loan that will be giving you 3.25% FIXED with only 3.5% down? This high leverage is going to give you little wiggle room and you will need to lease up quickly.
Have you done analysis on properties that are similar to the ones you intend to purchase? How are then renting on a gross rent basis? What about on a per square foot basis? Compare these figures to what your are assuming you will rent out. Are you close to "market"? Are you going to be able to get $4,200 dollars from two different tenants when the place was originally only meant to be a duplex?? I don't know the AK market at all, but that seems high to me.
Also, cap rates are more easily found for commercial real estate and not as much for duplexes, you can see if you're not paying too much for the property by looking at recent sales in the same area and comparing the $/SF
Thank you for the input. Yes, I have already been approved for 3.5% down and 3.2% fixed loan.
I have done analysis on similar properties, Juneau has a very high cost of living as there's not enough houses for people. Have had several RE agents tell us this is a realistic price.