I'be recently found a deal for a turnkey ready quadplex in Georgia. It's located in Douglasville, where the median family income is $143,000, and the seller is asking $385k for it. He said it's 100% occupied with $875/mo rent. Without having a chance to figure the numbers, this seems a bit pricey. The ad even said that there's a 10% CAP rate, 3 bedrooms and 2 baths in each unit. Does anyone have any insight as to this property? I'm new and learning, so anything is greatly appreciated.
Not having much information to deal with, it seems that you have a good sense here and it's pricey. What is the unique selling proposition for this property? 100% seller financing at 1% interest? Terms matter more than price in my book.
I spoke with the seller's agent today and he wants a NDA and/or Non-Compete agreement before he tells me the address so I can look at it. Also, he wants to know I have all the financing in place before he'll check on the current upkeep of the property (i.e. roof, hot water heater, etc.). Honestly, I don't; however, that doesn't mean I can't. I'm just unsure of this off-market property that seems priced pretty high and not a lot of information.
@John S. - I can understand the NDA but the non-compete agreement is odd. Would't be worried about signing the Non-Disclosure. As for financing, assuming you have a relationship with a Bank, it's fairly simple to get a pre-approval letter for financing. It will just come lined with contingencies. Depending on how you came across the 'deal' you have to understand that the seller won't want to waste his time, effort, and energy disclosing information on the property, providing you a tour, and also giving you his financials to someone who doesn't have the ability to purchase it. Not saying you can't, but just understand where he's coming from. Can't speak too much to anything else, however $875/mo for a 3 bed 2 bath where the median income is $143K seems awful lite. Good luck!