I wanted to get the opinion of some experienced small-multifamily investors to see if this looks reasonable. This deal would be for a total of six duplex (12 doors total) with each unit having 2 beds, 1 bath, 1 "office" in the basement (aka bed with non-compliant egress). I believe it's reasonable to get $700/mo rent for each of the 12 units.
I don't have a ton of experience with the calculators yet, so I want to make sure I'm on the right track. A lot of the numbers were added together to treat the entire deal like a single property. If you want to know where I got a number feel free to ask. Mostly I want to make sure I didn't leave anything out or underestimate it. For things like property taxes and insurance I took it from either the county website or a mortgage calculator.
It is also worth noting that this would be for a commercial loan (e.g. 5-year balloon loan), but the amortization would likely be 30 years.
All 12 units are identical layouts. Please let me know what you think!
*This link comes directly from our calculators, based on information input by the member who posted.
@Candy Gold In the big picture, yes. I haven't reached that step yet, but there are a few local investors I plan to contact if I determine this to be a good deal. Always open to options, though.
@Daniel Rutherford You could avoid having to get into a loan that balloons in 5 years. Commercial loans are available with 30 year terms and amortization with the rate fixed for the first 3 or 5 years. Rates will be a little higher than 6% flat after recent hikes. Depending on where your credit is at 7-8% may be more realistic. We've recently completed a similar portfolio purchase of contiguous duplexes like this.
Feel free to reach out anytime.
Best of luck with this purchase!
@Alex Bekeza If I could find something like that I’d jump on it. The local lenders I’ve talked to all seemed prefer balloons as to reduce their risk. However, I can push for a longer term loan. Thank you for the heads up!
@Warren Fanaken I do not have any property management companies locked in yet.
@Julie Dike The tenants currently are and would remain responsible for both. The only thing I may need to add is trash to be paid by me.