Investor · Atlanta, GA · Member since 2017 · 136 posts · 54 votes
Hello BP,
I'm trying to analyze a deal everyday until I pull the trigger on MF.
Here are the details:
Purchase price: $1.049M
Monthly Rent: $8100
1-2% rule, no: 0.77%
Area: B+/-
Units: 3/2.5
Days on market: 203
Year built: 2015
Estimated commission to me: $31,491
2 car Garage
1800 sq ft
Questions:
1. Besides the obvious benefits of buying like new (more depreciation, deferred CAP EX expenses) what are some others?
2. What would down payment/financing look like for something like this? Even if I owner occupied, loans like FHA and VA are out because of the total amount.
Your comments are much appreciated.
@Thomas S. My thoughts exactly after finding a commercial loan calculator. I'm going to find a way to make it profitable though. Seller is the builder.
Troy Luster Looks pricey to me. Commerical loan terms and the short amortization periods make things really tough. I guess I could make the argument that if you wanted to park your money, have a (relatively) low maintenance build, actually *wanted* to live there (as a person, not an investor), and didn't want any taxable income in the near term, then I could see doing it. But I have to admit, I would see this more in high dollar/appreciation markets than anywhere in Kentucky. Consequently, I'm not sure there's a strategy-market fit here.
But that's just me...
Jessie Niu Seller is probably the largest highest grossing broker/builder in the area. He may be interested in more than money. Thanks for the feedback.
@Andrew Johnson All good points. Thanks for the feedback. I was thinking similar. The property would have so much of a paper tax loss, my Real Estate team and other endeavors would definitely benefit.