Multiplex Opportunity. Help me analyze this deal!
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I have been in touch with the listing agent for this property and was actually the first to view it. The original list price was $125k, but the seller has offered me $10k off or $10k repair credit. He has stated that he would prefer a cash sale and does not sound open to any sort of creative financing ( I believe he may have his mortgage bundled with a second property).
This property is currently at 100% occupancy. Three units at $500/mo each.
Is there another way to approach this or should I move on?
For background information, I have a current FHA mortgage on the home I live in for $146k that I purchased in June of 2018 and access to $10k cash.
I just closed on a house in Illinois last week for $4,300 with an as-is value of $35-40k. This is rented out as of Dec. 1 for $475/mo with a term of 3 years.
Any advice is most welcome.
Thank you,
Most Popular Reply
You need to re-run your analysis, @Corey Nielsen. You've got a 33% vacancy rate and didn't include water/sewter, lawn care/snow removal, or management.
7% on your mortgage is crazy high in today's environment.
As far as financing, any way to pull some equity out of the Illinois rental?