Would you Buy This Deal ? 3 Unit Condos in FL
I am going to place an offer on 3 condos in the same building, and would appreciate some feedback from this amazing community. Here are the numbers:
Purchase Price: $105,000
Appraised value: $140,000 (based on my CMA)
Each unit is a 1/1 condo
HOA: $115 per month Each Unit (Includes Insurance)= 350 Total
Taxes: $1,900 3 Units together
Each unit has own meter for water and electric
All Units are currently rented @ $650 Each = Total 1,950
They need about $10,000 in renovation work
The Idea is to put 50% Down Payment to reduce my Monthly PMT and refinance in a few months later (Have very good credit and financials, but don't know many lenders yet) I own other commercial and residential property, but was done thru regular banks.
I Analyzed this deal and managing the units myself, with a 7% Mortgage on the 50%, the unit produces $1,000 dollars a month. After refinancing it, I would have to leave a bit of money in the deal since the refi is going for only 75% LTV (based on my conversation with the bank), leaving me a little over $500 buck a month.
AM I WRONG ON THIS ONE? How would you analyze it? Thanks for the feedback guys :)