OfflineI wanted to get some ideas to structure this deal which I think is pretty good. Some background info first- this is my first investment property and I dont want to use any of my own money.
I found this deal on craigslist in my own town. Here is the actual email the owner sent to me about the property:
"This is 4 units but it is 2 separate houses on one lot, listed with the city as 431 Columbus Ave. So actually it is two 2-unit houses.
Lot size: 45x60
Taxes: $2000
2 bedrooms each apartment.
Income: $1320 (330/un/mo avg)
3 units at 340 + 1 at 300 = 1320/Mo.
So there is room to raise the rents some. 2 bedroom apartments at 340 a month is pretty cheap. All units are rented.
Expenses:
-170/mo taxes
-120/mo insrnce
-50/Mo. Wtr/Swr
-200 prop. Mngmt
Total: -540
Tenants pay utilities.
1 apt's water is paid by owner. But you could change that if you want. Its just how we do it now. That's the $50 under Expenses.
I like to be conservative in my advertising. As you can see here the cash flow is much better than the ad said. On a cash purchase the cash flow would be more in the range of $700+/month.
Let me know if you have any other questions.
If you are a serious buyer with cash I can make you a better deal than $45,000."
So there it is, I want to make the terms a win win for both of us. Please give me some ideas.
Thank you in advance!
Have you run the Comps? How much work is needed. It is very important to take a look at the property yourself since this is your first investment. Blessings to all. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-