Bank owned 6 unit - what would you offer?

Question

Listed price is NONE. I've personally never seen that before so I want to make an offer to see how the bank responds. What would you guys offer with the numbers below?

- 6 units, 2/1 each unit 
- built in 1985 
- Just outside of Orlando, FL (will have very low appreciation overall, if any). 
- Only 4 occupied @ $450 each 
- market rent for all 6 units should be about $500 each 
- actual expenses per seller $12,905 
- seller financing, not available

thanks guys  :cool:

Ryan Pyle · Answer

I'd give the roof and mechanicals a hard look. If they are original they are probably at or near the end of their useful lives. I would back the cost of those replacements out of the purchase price. Also inspect each unit and calculate any repairs they may need to make them marketable. That goes for the occupied units too.

Account Closed · Answer

ryan pretty much gave you your NOI  (gross rents-expenses)..now you just need to find out what you can spend on a loan each month and also get your desired cashflow..does the property need any work?  how long has it been on the market for?

Tony Nguyen · Answer

13k / 32400 is about 40%. Isn't that about the norm for a 6 unit? If not, for the sake of this analysis, let's bump it to 50% then - $16,200 to be safe?

Just checked county site and 2010 taxes were $2,808.

Tenants pay all utilities except for common area which is about $500 annually.

Thanks Ryan

Ryan Pyle · Answer

At $450 * 6, you are looking at $32,400 in gross rents. I have a hard time believing your expenses would only be $13k/yr. What are the property taxes? What does insurance run down there? Who pays electric, gas, water/sewer? If owner pays, what does each run per unit typically down there?

Bank owned 6 unit - what would you offer?

Most Popular Reply