Updated about 9 years ago on . Most recent reply
4-plex deal. Need some Help
I just got a call back from a FSBO with a four unit apartment. It values at about $235,000. Is willing to do owner financing if I agree to $240,000 and can try to make a 25% down payment. ( $1000/ mo. payment to owner) The units are in good shape and the building needs approx $1500 in repair. The units pull in $695, $695, $620, $620. Total: 2630/mo. No cap-ex costs are needed for at least 5 years. Operating costs I try to estimate somewhat conservative= $1000 a month. My goal was to achieve $100/ door in cash flow.
My trouble is that I do not have the down payment capital and I dont meet the requirements for a traditional loan for the $60000 ( since they only count 75% of the rental income and with my current loans i would be over the 43% ratio). I am looking for some suggestions on how to make this deal work.