All Forum Posts by: Jerrmarco Rhodes

Here are 2 duplexes I found in the Atlanta,Ga area that are both 100% occupied and generating positive cash flow. I'd like to know if these two properties are a sound investment. Both of these properties are represented by the same agent and maybe the same seller. Are they a good deal? If so , what are some ways of funding a down payment?

Here is Property #1

CASH FLOW DUPLEX OWNER CARRY W/$10,000 DOWN

# Price:
$79,900
# No. Units:
2
# Building Size:
1,400 SF
# Price/Unit:
$39,950
# Property Type:
Multifamily
# Property Sub-type:
Duplex/ Triplex/ Fourplex
# Property Use Type:
Investment
# Commission Split:
3%
# Cap Rate:
10%
# Occupancy:
100%

Highlights

* Recent Appraisal of $112,000, Built in Equity
* Large Units w/ many amenities
* High Demand Rental Area near Kroger Citi-Center

* Located in Booming Intown Atlanta
* Local Management is Available to handle this investment
* Excellent, Turnkey Investment
The units rent for $550/month each, providing a total of $1100/month in potential rental income. The owner will carry with $10,000/down payment.

Here is Property #2

Cash Flow Duplex - Owner Carry W/ $10,000 down

# Price:
$89,900
# No. Units:
2
# Building Size:
1,200 SF
# Price/Unit:
$44,950
# Property Type:
Multifamily
# Property Sub-type:
Duplex/ Triplex/ Fourplex
# Property Use Type:
Investment
# Commission Split:
3%
# Cap Rate:
10%
# Occupancy:
100%

* Fully Renovated, Excellent Condition
* High Demand Rental Area near public transportation
* Tenants Pay All Utiliites Including Water

* Local Management Companies are available to handle this investment
* Tons of New Construction in the area
* Located in Booming, Intown Atlanta

Each unit features 2BR/1BA and rents for $500/month. Total income is $1000 per month for both units. Additionally, the tenants pay all their own utilities including water/sewer

Hey Everyone,

I am writing a business plan for a commercial real estate investment company. My plan is to first acquire a sufficient amount of self storage facilities for approximately the first 3 years. And then after that, I plan to invest in foreign commercial real estate properties such as office buildings and apartment buildings with the right people of course. My question is how do I include those goals into the business plan even though I want to invest in 2 completely different areas under one business? Or do I need to start another business for the foreign commercial real estate investing? Thank you for your help. And advice is gladly appreciated. :D

Hey Scott,

Thank you very much for your help. I really appreciate it. I had some plans to increase the NOI but like you said, there isn't much room for improvement but I wanted to acquire that property because of the cash flow. After reading your post, it helped me out. Thank you.

Hello all. I am a newbie to commercial real estate investing. I am focusing on self storage units and have come across what seems to be a good deal but I need some help to analyze it and make sure its solid. Thank you very much for your help. Here goes:
289 Units Gross Income:$255,850 NOI: $177,694
Price: $1,850,000
Building Size:40,340 SF
Price/SF:$45.86
Cap Rate:
9.60%
Occupancy:92%

Purchase Details:
THIS PROPERTY CAN BE PURCHASED THROUGH A LEASE/PURCHASE DUE TO THE OWNER'S CURRENT LOAN. IT IS A LOAN THAT HAS A HIGH PRE-PAYMENT PENALTY. THE OWNER WILL ALLOW A QUALIFIED BUYER TO TAKE FULL CONTROL OF THE PROPERTY AND LEASE IT FOR THE REMAINING TIME IN HIS LOAN. THE PROPERTY WILL CLOSE OUT IN JUNE OF 2010. Also this property has 2 managers.

I think this is a good deal but I am a bit confused by the High Prepayment penalty. And also, what would make me a qualified buyer in this case. Since its a lease option , I don't need a down payment. Is that correct. Thank you very much.