Possible Four Property Purchase...Advice Needed!
Wholesaling has been my sole focus since starting in real estate, but I have been keeping my eye out for an owner finance deal to get my foot in the door of owning rentals.
I have found a seller who is leaving the country. They own four townhomes in one neighborhood. Section 8. Tenants are longterm, 7.5 years, 2+ years, almost 2 years, and over 1 year. All four units are 2/1.5/2 parking spaces. Tenants pay all utilities.
Total monthly rental income is $2500, but after the annual inspections and adjustments this year this should go up to $2860/month.
Numbers:
There is an HOA that covers roof, exterior maintenance and landscaping.
Sales price (for all 4 units): $130,000
Down payment: $15,000
Amount financed: $115,000
15 year note (NO balloon)
9.5% int rate
$1201/mo principal and interest for all 4 units
Expenses (for all 4 units):
Taxes: $130.67/mo
Insurance: $141.67/mo
HOA dues: $448/mo
I already have got them down to the 130k with the 15k down, and they cannot really go any lower because they have an underlying lien.
I understand as is now is pretty thin with the current rents, but will get more lucrative if/when the new rates went into effect. Do you guys see anywhere here where I can make it a better deal for myself, or should I pass and move on to the next one?
Thanks in advance!