All Forum Posts by: Nom M.
Nom M. has started 1 posts and replied 2 times.
I'm in Fargo!
Hi!
Well, I closed on my first rental, and rented it a week later. Tenants are thrilled with the house, and I'm thrilled to have a full deposit and 1st months rent! It will cash flow $550 a month.
In the search for my first property, I also found a 7 unit (3plex and 4plex) that a local bank foreclosed on. They want 190k and will not budge on price.
The bad - It needs work. All units need flooring/kitchens. Both buildings need roofs.
One building needs siding & Windows.
All units full, but tenants are not great - handful of them have past evictions, most have pets. I guess around 50k to really bring it and all units up to a good/great condition.
The Good -
The bank is willing to finance 100% of the purchase (190k) at 4.5% for 30 years fixed - no balloon. They will cover missing deposits if I have to pay for the current tenants.
The so-so
They want me to escrow money for the exterior repairs around 20k-30k (Exact amount TBD but I have the funds), and complete repairs in 4-6 months. (We are still working details out here)
Gross Rent is $4000, and with the financing it will cash flow about $1500 a month. I've factored in Taxes, Insurance, Cleaning, Snow/Lawn, Turn over.
I've got the money to fix it, and my 8-5 can supply additional funds to turn it around if needed.
Knowing what you know, would you jump on this deal?
Nom