All Forum Posts by: Pratik Kochar

It’s 6 unit apt complex and rents are way below market. 

I am not in cash crunch but I wanted to utilize the cash for the units to do upgrade for next 5 years incrementally as tenants move out and increase the rent up by atleast 30%. If the appraisal is good enough with 675000 as of now, conservatively in 5 years with rent upgrades, refinance should be around 750000-775000 and I can manage to keep $100k as buffer during refi. 

Again evaluating the deal as of now, so all the comments and advise is appreciated.

I am exploring all the options as seller is ready to take up to $150k on second position with purchase price $675000

my preference is to keep out of pocket cash low. Anyone can creatively  structure the deal with this ?

other option is seller financing but the price is 725000 with 4% interest only and 5 yr balloon and 25% down

Hi, I’m looking to finance an commercial property and am exploring a structure where the seller carries back a portion of the down payment. Does any lenders allow secondary financing or seller carrybacks?

I am trying to get 65 LTV with 10 % down from my pocket and 25% seller carries back of down payment

Its not in expensive market and I agree that its over priced due to the nature of the deal with low interest rates for 5 years. I am considering this as a buy and hold for long term and over the seller financing term, doing some basic renovation to 2 BD to get around $90000 in annual rent and forcing the appreciation. Current appraisal can come to the asking price based on the market rate per unit.

Hello BP members, 

I am in the process of evaluating 6 unit multi family with tenants in place until Feb 2026. 

3 unit ( 2 b 2.5 bath) townhome

3 unit (studio 1b 1b) 

Here are the numbers 

Asking Price : $725000

Down Payment : 25%

Seller Financing : 3.5% (Interest Only) 

5yr balloon period ( Principal Amount due : $543750)

Total Gross Rental Income : ~$81000 annually

Total Annual expenses : $45400

$7200(Property Management)

$12000(Owner Paid Utilities)

$12000 (Taxes + Insurance) 

$2200( Pest control + landscaping) 

$12000 (Repairs/Capex Reserve )

Net Operating Income : $81000-$45400 = $35600

Total Cash Invested : $181250(down payment) + $13000 (closing cost) 

Annual Deb Service : ~$19000(Interest only)

Net Income : $35600 - $19000 = $16600

Cash flow per month : $1400 

Cash on Cash Return : ~8.5%

There is an upside potential on increasing the rent on 2B units during lease renewal. 

I own 4 single family LTR rental properties & this is my first time evaluating 6 unit apartment complex kind of deal and need inputs from fellow investors if I am overlooking any aspect of multi family investment. 

Me and my wife are real estate investors and we live in San Francisco and both of us are in tech and do a W2 full time job. We have done out of state investing and we hold 3 SFH and one Town home in Atlanta, GA and looking to expand our portfolio.

We attend a monthly meetup every 2nd thursday in the month. Let me know and i can send over the link. Looking forward to connect with like minded couples.

@Alba Cheung I am going through same situation. My tenant is unresponsive and has not paid rent for this month. Rent was due by 5th but no communication on late payment and is not responding to my text/emails.

 How was your experience with EvictThemForMe?

I am thinking to hire them to start the paperwork to send the ondemand notice atleast. 

Electrician gave me an estimate of $1500 for panel upgrade and $7200 for entire electrical system including service upgrade + panel upgrade.

He is saying that he will replace the breakers and 100 amps will be fine for $1200 sq ft townhome.

Estimate for panel upgrade: $1530

a) Replace 100 amp main breaker panel with new 20 space 100 amp panel

b) Replace 6 15 amp breakers

c) Replace 4 20 amp breakers

d) Replace 2 double pole 30 amp breakers

e) Replace 1 double pole 50 amp breakers

f) Replace 15 amp GFCI breaker

any inputs?

I am looking in Smyrna, GA area and I am more inclined to upgrade them as I will remodeling entire kitchen and hence do not want any trouble with load on the circuits.