Assuming it’s not in a war zone and putting aside current tenant situations (evictions, low rents, etc.), if it was our company, this property would be very close to what we look for. But we would refi out most of the down payment to try to leave as little money possible in the deal. I do question if it really only needs $1,000 in repairs. Even if it was essentially turnkey, I would be pretty skeptic of it needing almost nothing at all. The closing costs also seems a bit small depending on your financing. Is this the asking price or could you offer less? What’s your source for finding this property?
Originally posted by @Jacob Tracy :
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Looks good to me. Is the place older, if so I’d allocate more % to repairs.
Also where are you getting a loan for 4.75%, I’m genuinely interested as I have been getting quotes for a commercial loan for 5.75-6.25% right now. Thanks
This is an almost turn key property that was built in the late 80's and has been remodelled along the way. I actually know the current owner who is willing to work with us on doing a "subject to" on his current mortgage and carry back the down payment. He is the president of a local bank and is able to work with us on the financing. He also agreed to an interest rate of 4.75% on the carry back portion of the financing. This is why the closing costs aren't very much and we are more aware of any issues with the property. I believe this is a pretty good deal also and it is a value add deal when it comes to monthly rent amounts, as we believe they are about 10 percent low for the area. Thank you!