OfflineHi DG family,
Well my father owns his own store front in one of the 2 buildings he owns (902 and 904).
The building right next to him is up for sale (906) and he is thinking about purchasing it.
Quick Stats from zillow,
902= $575,200 and mortgage=$3,011
904= $681,700 and mortgage=$3,236
he has a positive cash flow of $1,099 a month from both property and wants to know if purchasing the 906 (zillow $590k -asking $850k) and the mortgage will be about $3,500...
His business will be able to support the mortgage from 906 but he wants to get advice first...
If he does this he will own 3 building (6 apt+3 store front) and i told him its deff worth looking into.
so my question is, what do you guys think? does this sound pretty good or deff something to pull away from.
thanks DG family for any advice.
I am not sure I would trust Zillow on commercial properties. I would talk to a realtor and have then give you some comps. If Zillow is correct, they are asking too much for the property. In this market you should be able to pick it up cheap, 50-70% below market value.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
It is possible they are asking too much .Also i would check against the county and see what they say the property is worth. Most likely that will be different from zillow also. I find that zillow shows property on the high side too.
" Not Having a goal is more feared than not reaching one"
Christa Niven
really, so even though zillow says 590k and they are asking 850k, both prices are high? a price like this, what would a investor throw at these ppl? 550k,530k, etc
and tomorrow me and my father will check the county records to match what zillow/asking price are correct...
i think it could make a killer deal if he could get the property at a really good deal and could maintain the mortgage
Okay so i went on the NYC-Brooklyn county property records and found this...
Market Value History:
Tax Year: 2011/12
Market Value: 359,000
Tax year: 2010/11
Market Value: 359,000
Tax Year: 2009/10
Market Value: 349,000
Tax Year: 2008/09
Market Value: 369,000
what does this mean exactly? the property itself is really worth 359k? so an affore would b around the 4-500k?
Not enough info provided to know if this is a deal
I would say that cash flow of $1099 on the other two buildings seems awfully low!
A buildings value is based on NOI, cash flow and cash on cash returns, not what zillow says!! Basically the property value is based on the profits the building generates. What is the net operating income on the building in question? Roughly, you can multiply that number (NOI) by 10 and you will have a number close to what the property is worth.
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
The info you provided is the Accessed Value, or what that City bases there tax rate on. This is not always the value of the property, actually most accessed values are higher than the market value.
Commercial properties are valued based on the rental income.
Market Value History:
Tax Year: 2011/12
Market Value: 359,000
Tax year: 2010/11
Market Value: 359,000
Tax Year: 2009/10
Market Value: 349,000
Tax Year: 2008/09
Market Value: 369,000
what does this mean exactly? the property itself is really worth 359k? so an affore would b around the 4-500k?
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Irv, i'll look into it for you
I'll PM you
Thank you guys so much for your help, im new at this but im dedicating 4+ hours a night, from watching dean to reading post, any and all help is welcomed...
will keep you guys updated as tomorrow is a new day
on NYC property as there is no one better to give you accurate advice.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
are you trying to make me cry???
sniffles, sniffles....
I read through this whole post and everyone is correct. You certainly dont have enough info to make an informed decision from what I can tell. As Bill stated, take Elix up on his generous offer to help you -and keep us posted!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Once you get the value of the property you could use a sandwich sub-lease with an option to buy. This way he would control the property without having to pay taxes, insurance, etc and have someone else lease the property from him with an option to buy. That way he could "test" the value of purchasing the property without making a commitment.
There are more options available than meet the average person's eye. Find out all of the options and use the one that suits his needs the best. How wonderful that your father values your experience and opinion.
Wendy
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com