The complex I live in is up for sale. all units are filled and owner had done much improvement. not much maintenance is left. the income is about 15000 per month and the payment for a 30 year loan on about 6% APR is about 13000 per month. who has a wise answer for me? PLEASE HELP!!!!
2007-05-17 18:30:20 · 7 answers · asked by medcenman 5 in Business & Finance ➔ Renting & Real Estate
My question to you is where did you go for this loan prequalifiaction ? What are the terms? I have a commercial loan department that can't be beat and we are in all 50 states. Did this loan company offer you 5,10,15% down option with a 30 yr fixed rate with no baloons? Can they close this loan in 30-45 days without financial reviews? Not trying to spam here but i need to know more about this offer because if you can get a loan that works better for you all the way around then it may be a great deal for you and not such a risk. Email me I will be glad to try and beat your current offer.
2007-05-17 21:14:14 · answer #1 · answered by Someone to talk to 1 · 0⤊ 0⤋
ask the current owner to see the history of the complex, financial, physical, etc. you must understand that, historically speaking, the complex wont start showing YOU a profit for at least 5 years. do you have a financial foundation that can carry you till then? inspections, insurances, building codes, renter's laws, maintenance and maintenance workers, taxes and alot more will cost the business. you will need a rental agency to help with the work load. its a big investment in time and money
2007-05-17 18:56:26 · answer #2 · answered by oldguy 6 · 0⤊ 0⤋
Been a real estate investor for over 17 years, and I wouldn't touch what you are proposing - too risky.
You are seeing $2,000 a month income. I see thousands a month negative and the potential for problems.
You are not figuring many, many things.
How much is insurance on the property. That will cost you a small fortune and you need good liability to protect you from lawsuits. You could be looking at $1,000 a month, probably more just for insurance.
Taxes - they may be due once or twice a year, but have to be paid, so you need to take out every month for that.
Utilities - there are often common areas with lighting, and electric. Water for landscaping, etc.
Landscaping and Maintenance costs. Mowing, tree and bush trimming.
Many expenses too that will surprise you too. What if an air conditioning unit goes out? What if 3 of them go out? A water line in the wall breaks and you need to get a plumber out at 3am? The pavement in the parking lot breaks up and needs repaired? You have sooo many potential surprises with only $2,000 to play with.
Dangerous, very, very dangerous. I would NOT touch it with those figures. Need another $5K - $6K a month income to even start considering it.
Just my 2 cents.
Todd
MillionaireCoaching.com
2007-05-17 20:51:31 · answer #3 · answered by Todd B 2 · 0⤊ 3⤋
i might think of you will possibly opt to ingredient in a 5% emptiness allowance besides as a 5% managment and upkeep allowance. in case you think of you could pull off the lending piece and cover the final expenditures a approach or the different (regular or inventive) then choose for it. you do no longer could use a 30 3 hundred and sixty 5 days mortgage, their are companies out their with diverse products that would develop your month-to-month money flow. i'm undecided the type you will possibly assume to sell it for that particularly greater while the ingredient particularly money flows and you needless to say won't have any inherent fairness after a 300 and sixty 5 days yet thats to no longer say that their isn't a manner. good success
2016-11-24 20:51:43 · answer #4 · answered by ? 4 · 0⤊ 0⤋
people all across the country are losing their shirts on properties and paying more out than they are bringing in, due to the whole mortgage industry crisis and other factors.
many people who were enjoying multiple streams of revenue a couple years ago are now losing property or money and are having issues finding renters or buyers who wont purchase their property for less than what they paid for it
2007-05-17 18:37:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
if the income can cover the payments mortgage/ insurance/ etc and some left over its all good. as long as your return on investment is at least double digits i would invest. get some education in it and you will do well.
2007-05-17 18:43:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
where is this located? what city?
2007-05-17 18:33:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋