So I'm basically just practicing analyzing deals. I have not done due diligence on these, the water, garbage and insurance are purely estimates and likely high. These are 2 properties side by side, 1 Tri and 1 Duo. Same owner, same selling agent. I put in $10K for rehab just to give a cushion but I'm told the properties are in good shape.
This is actually what I got form the agent "The owner is elderly and wants to start liquidating all of her rental properties, since her husband has passed away and her daughters who are involved with the property management are no longer interested in this business. They are not desperate to sell and her son-in-law is a contractor who has fairly recently updated both buildings inside and out. They calculated their return at 13%. It is 100% occupied and all tenants have been there for more than one year and have yearly leases."
So basically looking for input and if there is anyone really looking in the Knoxville area then maybe it's a good lead for you. I'm not in a position to come up with 20% down so likely couldn't get them anyway. Like I said just practicing and looking for feedback.
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Hey Derek send me what your looking at. Would love to go over the numbers or potentially look into this.
Hey Derek, I am actively looking for multi-family in Knoxville. If you can't come up with the 20% down, maybe we could come up with another type of partnership and work on this together. Can you send me any information you have?
@Derek Tellier Why not use HM to purchase and a partner for the down payment? Or perhaps you could get a commercial bank loan and have the seller carry 30%?
Thanks I have another hurdle to get over not related to the funds that I hope to be past in a few months. After that I’ll be more than open to other options. I’ll keep you in mind when I’m in a position to actually offer on a deal.