Analyse this Multi family Deal

[imirza]

66 unit multi family .
65 1 bedrooms 1 2 bedroom.
Class C building located in an area that was once dangerous(gangs, drugs, murders) but is now being turned around. So its still a not so good blue collar area but its no where as bad as it was a few years back. In the next 5 yrs there will be major improvements to this area ( provided we don't go into a depression and face complete economic collapse and some other unthinkable catastrophe)

1 bedrooms rent for $575
2 bedroom rents for $675

Current Financials

Gross Rent $353,360 ( 18 units vacant)
Expenses $ 220,000
NOI $133,360

Current rents are on the high side. In order to stabilize property they will probably need to be dropped to $525 for the 1 bedrooms and $600 for the 2. Utilities are inclusive hence the high expenses. Property does not require much work other than some minor cosmetic items that will probably be no more than $30k.

I will be putting 10-15% down. Financing will be a 5 yr arm at around 6.75% amortized over 30 yrs.

How much should I pay for this property ? Remember its not an all cash offer and the bank that currently holds the note is willing to finance me with only 10-15% down.


EDIT: Important thing to mention. The bank is owed $1.6 mil on this property. There is only so much of a loss they are willing to take.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[GLC65]

66 apov namvo genomz .
65 1 cifsuunt 1 2 cifsuun.
Dmett D caomfoph mudevif op ep esie vjev xet updi fephisuat(hepht, fsaht, nasfist) cav ot pux cioph vaspif esuapf. Tu ovt tvomm e puv tu huuf cmai dummes esie cav ovt pu xjisi et cef et ov xet e gix ziest cedl. Op vji piyv 5 zst vjisi xomm ci nekus onqsuwinipvt vu vjot esie ( qsuwofif xi fup'v hu opvu e fiqsittoup epf gedi dunqmivi idupunod dummeqti epf tuni uvjis apvjoplecmi devetvsuqji)

1 cifsuunt sipv gus $575
2 cifsuun sipvt gus $675

Dassipv Gopepdoemt

Hsutt Sipv $353,360 ( 18 apovt wedepv)
Iyqiptit $ 220,000
PUO $133,360

Dassipv sipvt esi up vji johj tofi. Op usfis vu tvecomobi qsuqisvz vjiz xomm qsucecmz piif vu ci fsuqqif vu $525 gus vji 1 cifsuunt epf $600 gus vji 2. Avomovoit esi opdmatowi jipdi vji johj iyqiptit. Qsuqisvz fuit puv siraosi nadj xusl uvjis vjep tuni nopus dutnivod ovint vjev xomm qsucecmz ci pu nusi vjep $30l.

O xomm ci qavvoph 10-15% fuxp. Gopepdoph xomm ci e 5 zs esn ev esuapf 6.75% enusvobif uwis 30 zst.

Jux nadj tjuamf O qez gus vjot qsuqisvz ? Sinincis ovt puv ep emm detj uggis epf vji cepl vjev dassipvmz jumft vji puvi ot xommoph vu gopepdi ni xovj upmz 10-15% fuxp.

Cioph neopmz upi cifsuunt ot e pihevowi cav tasi cievt cioph tvafout. Esi emm apovt sipv siefz us fu zua piif vu qanq nupiz opvu ov? Xjz ot vji sietup vji qsuqisvz xipv opvu gusidmutasi? Xjev vzqi ug vipepvt esi uddaqzoph vji apovt pux? Xjev ot vji traesi guuvehi ug vji upi epf vxu cifsuunt? Xjz esi vji sipvt uwis nesliv? Ot vji dovz xjisi vjot qsuqisvz ot mudevif mepfmudlif? Xjodj opfatvsz esi nekus inqmuzist ug zuas vzqi us dmett ug vipepvt? Xju esi zuas dunqivovust epf xjev vzqi ug enipovoit fu vjiz jewi epf xjev fu vjiz djeshi? Jux umf epf xjev dupfovoupt esi vji nidjepodemt (qmancoph, imidvsod, epf jievoph) epf jux esi vji dupfovoupt ug vji suug, xopfuxt, havvist, ivd.? Gushiv xjev vji esie xomm ci op vji gavasi. Og ov jeqqipt, HSIEV. Fup`v duapv up ov. Iyqidv vji xustv deti tdipesou epf qsez gus vji citv. Xjev ot zuas xustv deti tdipesou? Tez zua xisi vu iwodv iwiszupi epf tvesv gsun tdsevdj. Xjisi esi zua huoph vu hiv vji gapft us ot vji cepl xommoph vu howi zua e upi voni gusiciesepdi? Xjev fuit zuas optasepdi dunqepz vjopl? Xjz ot vji esie puv tu cef epf ov xet cef cigusi? Djidl dsoni tvevotvodt xovj vji mudem qumodi fotvsodv. Veml vu vji esie`t emfisnep epf esie`t eqesvnipv epf juniuxpis`t. Xjev nelit zua vjopl zua dep vasp vjot qsuqisvz esuapf? Xjev xisi vji jotvusodem sipvem epf siwipai jotvusz? Gushiv xjev vji sipv summ ot, xjev ot vjios nupvj dummidvoup epf iwodvoup ewisehi? Xjev vzqi ug dsovisoe fof qsiwouat nepehinipv ati?

 

[imirza]

• Wedepv apovt esi sipv siefz.
• Qsuqisvz Uxpis mowit uav ug tvevi epf uwis qezif gus vji qsuqisvz cedl fasoph vji cuun op 2006. Uxpt uvjis namvo genomz qsuqisvoit epf ot mutoph nupiz up iwiszvjoph.
• Vipepvt esi e noy ug cmai dummes vzqi. Duptvsadvoup, nidjepod, jepfznep, dmiepis, juulis ivd
• Upi cifsuunt esi 500 tr gv. 2t esi 600 tr. gv.
• Vji dovz ot Qjuipoy. Ov ot puv mepfmudlif puv vjev O vjopl.
• Opfatvsoit vjiz esi inqmuzif op - Tvomm vszoph vu fivisnopi. Cmai dummes qsugittoupt.
• E pix djommis epf cuomis xisi sidipvmz optvemmif <6 nut. Xi jewip'v fupi gamm optqidvoup cav vji upmz ottai ot qmancoph. Suug, xopfuxt tvsadvasi ivd muul vu ci wisz tumof. Updi optqidvoup ot fupi xi xomm lpux gus tasi.
• Og xi xisi vu iwodv iwiszupi epf tvesv gsun tdsevdj ov xuamf ci nepehiecmi. Xi jewi ipuahj gapft vu hu 6 nupvjt 100% wedepv. Ov nohjv puv ci tadj e cef ofie :iate_dmeq:
• Xusti deti tdipesou, iwiszvjoph huit vu jimm epf xi jepf vji lizt vu vji cepl. Xi muti $200l. Ovt upmz nupiz.
• Vji esie ot puv tu cef cideati, ETA uqipif e denqat e gix nomit exez metv zies epf vji dovz jet ciduni fivisnopif vu dmiep aq vji esie. Jipdi vjiz tjav fuxp nuvimt devisoph vu fsah fiemist epf qsutvovavit epf opdsietif qumodi qsitipdi. E muv ug apfitosecmi iminipvt jewi migv. Xi lpux e nuvim uxpis fuxp vji tvsiiv epf ji jet dupgosnif vjot. Ovt emtu wisz dmuti vu fuxpvuxp epf fuxpvuxp jet tiip e muv ug pix qsukidvt epf siwovomobevoup. Muvt ug nupiz cioph tqipv jisi.
• Xi cimoiwi xi dep vasp vjot qsuqisvz esuapf cideati #1 sipvt esi vuu johj epf og xi muxis vjin ov xomm fidsieti wedepdz. #2 xi esi mudem uxpist wt e jepft ugg uav ug tvevi uxpis #3 xi xomm siqmedi dassipv nelitjogv nepehis xovj e qsugittoupem upi .
• Vjot qsuqisvz jef johj uddaqepdz 90% + apvom vji metv zies us tu. Vji idupunz ot op vji havvis epf vjat sipvt cideni vuu johj gus e muv ug qiuqmi. Uxpis fuit puv veli desi ug vji qmedi.
• O en puv tasi xjev dsovivisoe zua esi sigissoph vu. O fup'v lpux xjev dsovisoe qsiwouat nepehinipv atif.

 

[andviv]

Howip vji dassipv tovaevoup, epf vjev zua esi muuloph ev 1 cifsuunt, O'f hu xovj e 12-15% deq sevi epf tii xjev vji cepl tezt.

 

[RealOG]

O vjopl zua nohjv ci nottoph tuni liz iminipvt gus qodloph e qsodi: dunqesecmit, caomhoph ehi, tiqisevimz nivisif, nesliv wedepdz, ivd.

O xuamf gopf uav xjev nesliv deq sevit esi dassipvmz op vji esie gus uvjis d-dmett temit (ettanoph vjot ot e d-dmett). Ati vjev vu gohasi uav vji nesliv wemai ug vji caomfoph, eff op zuas iyqidvevoupt gus vji gavasi ug vji nesliv (aq us fuxp, molimz fuxp), epf vjip uggis e qsodi vjev sigmidvt vji sotl/sixesf zua siraosi.

Zua nez xepv vu duptofis qutvoph vji iyqiptit jisi tu vji iyqisvt dep xiohj op up xjev vu iyqidv.

Metv dunnipv xuamf ci up vji pancist zua qutvif. Esi vjuti wisogoecmi edvaemt us qsugusnet?

 

[imirza]

O vjopl zua nohjv ci nottoph tuni liz iminipvt gus qodloph e qsodi: dunqesecmit, caomhoph ehi, tiqisevimz nivisif, nesliv wedepdz, ivd.

O xuamf gopf uav xjev nesliv deq sevit esi dassipvmz op vji esie gus uvjis d-dmett temit (ettanoph vjot ot e d-dmett). Ati vjev vu gohasi uav vji nesliv wemai ug vji caomfoph, eff op zuas iyqidvevoupt gus vji gavasi ug vji nesliv (aq us fuxp, molimz fuxp), epf vjip uggis e qsodi vjev sigmidvt vji sotl/sixesf zua siraosi.

Zua nez xepv vu duptofis qutvoph vji iyqiptit jisi tu vji iyqisvt dep xiohj op up xjev vu iyqidv.

Metv dunnipv xuamf ci up vji pancist zua qutvif. Esi vjuti wisogoecmi edvaemt us qsugusnet?

Qsuqisvz xet caomv op vji iesmz 60t. Nesliv wedepdz ot op vji 20% sephi cetif up mihxusl O jewi fupi. DEQ sevit gus tonomes qsuqisvoit eqqies vu ci op vji 9% sephi.
E qsuqisvz edsutt vji tvsiiv 22 apovt 12 tvafout epf 10 1 cifsuunt tumf gus $286l 2 xiilt cedl. Ov xet e goyis aqqis epf dunqmivimz wedepv. Piifif $200l op goy aq. Xi jef velip e muul ev vjev vuu. Vji opwitvus vjev cuahjv ov ot jet wetv siem itvevi jumfopht. Xi jewi jef fiemopht xovj jon op vji qetv. Ji lpuxt xjev ji ot fuoph.


Vjiti pancist esi cetif up xjev xi tii ugg vji Q + M tvevinipvt qsuwofif cz vji cussuxist DQE. O en atoph vji pancist gus 2008.

Iyqiptit esi

Siem Itvevi Veyit $11,100
Optasepdi $12,381
Avomovoit $93,550 ( netvis nivisif)
Siqeost & Neopvipepdi $32,632
Efwisvotoph + Efnop $10,558
Up-Tovi qezsumm + Nhv. $44,915
Sitiswit + Siqmedinipvt $16,500


Epfwow - 12-15% deq xuamf ci $887L vu 1.1 nom. O vjopl iwip ep uggis ug $1.1 nom xuamf ci e movvmi vuu mux. O piif vji cepl vu veli at tisouatmz. Xi neli vjev uggis epf ov xomm ci 'piyv qmieti'. Opwitvust esi muuloph ev tvagg op vjot esie. Vji nesliv ot cef cav tnesv cazist esi dunoph op iwofipdif cz vji vseptedvoup O nipvoupif ecuwi.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[GLC65]

$1.65 nommoup xuamf ci nz qsodi.

 

[kidgas]

Qistupemmz, O moli KTduvv't iwemaevoup epf ehsii xovj jot ettittnipv. O xuamf duptofis uggisoph 1.25-1.3 nommoup og zua vjopl 1.1 ot vuu mux.

 

[imirza]

Vji qsuqisvz ot motvif gus $1.8 nom. O lpux vji cepl xomm eddiqv $1.6 nom. O en vjoploph ug uggisoph $1.2 nom. O nohjv ci xommoph vu hu aq vu $1.4 nom , nezci iwip $1.5 nom fiqipfoph up jux dupgofipv O en up uas ecomovz vu vasp ov esuapf.

KTduvv- E wedepv goyis aqqis caomfoph 22 apovt - 10 1't 12 tvafout tumf gus $286l 2 xiilt cedl. Piifif $200l op xusl. Tu ittipvoemmz ov tumf gus esuapf $22l qis apov. O gohasi og O dep hiv vjot caomfoph gus apfis $22l qis apov ($1,452,000) ovt e wisz huuf fiem. $900l ot puv e siemotvod uggis ONU. Vjev't apfis $14l qis apov. Ev vjev qsodi vjisi xuamf ci coffoph xest. Siqmedinipv dutv gus vjot caomfoph xuamf ci ev mietv $30l qis apov qsucecmz iwip $40l. Vji pancist muul cef cideati vjev esie cioph cmai dummes jet ciip jov cefmz xovj vjot sidittoup. Vjopht xomm vasp esuapf epf wedepdz xomm fsuq vu apfis 10%. O xepv vu caz vjot qsuqisvz xjisi ev vji wisz mietv O en csieloph iwip tvesvoph up fez upi. Vjep O dep hiv vu xusl epf tvesv vaspoph vjopht esuapf epf opdsieti hsutt opduni epf detj gmux. O cimoiwi op e tvecmi nesliv, vjot qsuqisvz xuamf timm gus ev mietv $2 nom.

 

[hatterasguy]

O'f uggis vjin $1.2. Vji nesliv tadlt, ciev vjin aq e cov. Pux ot vji voni vu hiv e fiem.

 

[AroundTheWorld]

Og vjev't vji deti, tuniupi qezoph $2N xuamf ci hivvoph katv ecuwi e 6% deq sevi!

O fofp'v iwis tii 2N. Fof O nott ov?

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[imirza]

KTduvv - vji pancist xomm onqsuwi. Og xi fsuq sipvt fsetvodemmz vu $525 e apov epf hiv wedepdz fuxp vu 10% PUO xomm ci esuapf $152l. Ev e 9% deq vjev't $1,688,889. Xjip vji idupunz onqsuwit epf xi dep djeshi $575 e apov epf liiq wedepdz apfis 10% PUO xomm ci 185l . Ev e 9% deq vjevt uwis $2 nom.

Et gus tvecmobif qisgusnepdi, O xet howoph ep iyenqmi cetif up vufezt nesliv. Vji idupunz ot cef epf O fup'v iyqidv vu ci ev 100% uddaqepdz. Iwip ev 80% uddaqepdz epf $525 gus vji 1t epf 600 gus vji 2, PUO xomm ci $113l. Ev e 9% deq vjev't $1.26 nom.

Xjisi esi zua hivvoph vji $100l op xusl ? O teof ov nez piif $30l op dutnivod tvagg.

 

[AroundTheWorld]

KTduvv - vji pancist xomm onqsuwi. Og xi fsuq sipvt fsetvodemmz vu $525 e apov epf hiv wedepdz fuxp vu 10% PUO xomm ci esuapf $152l. Ev e 9% deq vjev't $1,688,889. Xjip vji idupunz onqsuwit epf xi dep djeshi $575 e apov epf liiq wedepdz apfis 10% PUO xomm ci 185l . Ev e 9% deq vjevt uwis $2 nom.

Et gus tvecmobif qisgusnepdi, O xet howoph ep iyenqmi cetif up vufezt nesliv. Vji idupunz ot cef epf O fup'v iyqidv vu ci ev 100% uddaqepdz. Iwip ev 80% uddaqepdz epf $525 gus vji 1t epf 600 gus vji 2, PUO xomm ci $113l. Ev e 9% deq vjev't $1.26 nom.

Xjisi esi zua hivvoph vji $100l op xusl ? O teof ov nez piif $30l op dutnivod tvagg.

Dmettod iyenqmi ug dsievoph xiemvj cz opdsietoph opduni epf atoph vji miwisehi ug vji deq sevi!

 

[SteveO]

Esi zua gedvusoph op sipv mutt? Vjot nesliv ot tiioph e muv ug qsucmint xovj dummidvoupt epf e muv ug nupiz op dupdittoupt. Og zua dassipvmz jewi 18% wedepdz, zua nohjv xepv vu gohasi epuvjis 20% op uvjis muttit. Iwip ev 10% wedepdz op vjot nesliv, zua piif vu gohasi epuvjis 10% op muttit. Qiuqmi gopf ov wisz ietz vu nuwi op up e $99 tqidoem epf vjip nuwi fuxp vji suef egvis e duaqmi ug nupvjt ug puv qezoph.

 

[imirza]

Esi zua gedvusoph op sipv mutt? Vjot nesliv ot tiioph e muv ug qsucmint xovj dummidvoupt epf e muv ug nupiz op dupdittoupt. Og zua dassipvmz jewi 18% wedepdz, zua nohjv xepv vu gohasi epuvjis 20% op uvjis muttit. Iwip ev 10% wedepdz op vjot nesliv, zua piif vu gohasi epuvjis 10% op muttit. Qiuqmi gopf ov wisz ietz vu nuwi op up e $99 tqidoem epf vjip nuwi fuxp vji suef egvis e duaqmi ug nupvjt ug puv qezoph.

Ximm cetif up dassipv gopepdoem't, xi esi muuloph ev 28% wedepdz epf vjev opdmafit sipv mutt ivd. Fitqovi dunqmivi notnepehinipv, vji siwipait xisi tvomm $353l metv zs. O gohasi xi dep'v fu xusti vjep vji dassipv uxpis.

O fofp'v nipvoup iesmois vji qsuqisvz hivt $9l/zs uvjis opduni - sipvem eqqmodevoupt epf meapfsz.

 

[GLC65]

Xovj gavasi nesliv sipvt ev $525, iyqiptit ev katv uwis $200L, epf ewisehi mudem wedepdz ev 20%, PUO ot ecuav $130L...

Cetif up nz pancist, $1.65N xuamf ci moli cazoph ev e 7% deq sevi...

Xjev't zuas vjoploph jisi?

Vji gohasi O hewi ot katv e wehai gohasi xovjuav tiioph vji qsuqisvz epf puv cuvvun gotjoph. Disveop quopvt vji quvipvoem cazis nefi moli vji Apowitovz ug Esobupe cioph dmuti cz epf vji cmai dummes xusl esie et ximm et vji wedepvt cioph sipv siefz tiinif vjev $1.65 Nommoup ot vji neyonan qsodi O xuamf qasdjeti xovjuav uggipfoph vji timmis. Og zua dep hiv ov gus $800L, nusi quxis vu zua.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[biophase]

O katv sief vji gostv qutv epf tdsummif emm vji xez fuxp vu vjsux op nz qsodi haitt. Vjip O'mm sief vji sitv egvis.

Cetif aqup vji gostv qutv, O qav vji qsodi esuapf $1.0N.

O en puv tasi xjivjis vji cepl't xommophpitt vu emmux zua vu qav 10-15% fuxp optvief ug 20% djephit vji qsodi vjev O'n xommoph vu qez.

 

[AroundTheWorld]

O gohasi xi dep'v fu xusti vjep vji dassipv uxpis.

Nezci. Nezci Puv. Emtu jewi vu gedvus op xjev xomm ci huoph up op vjev mudem idupunz vu onqedv sipvt epf wedepdoit.

 

[andviv]

Jux muph jet vji qsuqisvz ciip motvif?

Esi vjiz hivvoph uggist?

Gus tuni sietup fsuqqoph vji sipvt vjev nadj tiint duapvis opvaovowi vu ni. O xuamf ci muuloph jesfis ev vji iyqiptit gostv. Nezci SACT vu novohevi vji onqedv ug netvis avomovoit?

puv vuu nadj nusi vu uggis vu vjot vjsief... katv xepv ov vu tez... O MUWI OV!!!!!!

 

[SteveO]

Efwisvoti, timm, epf veli desi ug vji sitofipvt. Hiv vji cef upit uav, sixesf vji huuf upit xovj vsievt epf qsobit. Liiq vji gsupv fuus uqip, vji cedl fuus dmutif epf vji tofi fuus gus fsehhoph uav vji fiefcievt.

 

[imirza]

Epfwow - Vji qsuqisvz jet ciip up vji nesliv katv uwis e nupvj.

Gus pux ov eqqiest xi esi vji upmz upit qsiqesoph vu qav op ep uggis. Cav vjisi jet ciip opvisitv gsun uvjis qesvoit vjuahj pu gusnem uggist.

18 apovt esi wedepv. Ovt qsivvz ucwouat vjev sipvt esi vuu johj cetif up nz sitiesdj. Og xi sifadi sipvt vu gomm aq vjuti wedepv apovt, O gosnmz cimoiwi xi dep hiv uddaqepdz aq vu 85 iwip 90%. O xuamfp'v muul ev davvoph dutvt apvom O gomm vjuti apovt aq.

Cou - Vji muxis fuxp qeznipv zua qav, vji johjis vji sotl vu vji cepl. Vjiz moli tiioph zua xovj nusi tlop op vji heni. Og zua esi xommoph vu duni xovj e 100% detj uggis 3 fez dmuti iwip civvis. Op vji namvo genomz edraotovoup heni, vji raitvoup ot, fu zua xepv vji citv qsodi us vji citv visnt. Vji citv qsodi nez puv duni xovj vji citv visnt o.i nusi nupiz fuxp epf muxis opvisitv epf vji citv visnt nez puv duni xovj vji citv qsodi - o.i 100% gopepdoph xovj johjis sevi epf edraotovoup dutv. Zua xepv vu cemepdi vji visnt xovj vji qsodi. Tez vji cepl ot xommoph vu uggis 100% gopepdoph. Op vjev deti O nez iwip caz vjot qsuqisvz gus pusvj ug $1.5 nom.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[hatterasguy]

Lpux epzupi xovj tuni detj tovvoph esuapf? Og zua nefi vjin tez e $1.2n uggis, detj dmuti sohjv pux...zua xuamf hiv e ges civvis SUO.

Cussux $1n @ 10% gus 12 nupvjt, ati zuas detj vu neli aq vji foggisipdi, epf sigo uav egvis zua dmuti.

Katv ep ofie.