Runum
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I don't like properties where the seller pays heat either, but part of my strategy was to look to buy it at a price that already had decent positive cash flow and then sub meter it.
However, with this property I agree that I think there are some expenses missing. If the current owner did not pay a mgmt co, then I certainly would and would insist that number be in the calculations.
Am I out of line to ask for a 10% cap rate here? Especially since I'm at risk of a 33% increase in nat gas costs this winter.......
Downpayment would be 20%...cash on equity is 4696 or 4.01 percent...........
I do hope there is more the this story. IMHO if you are going into the deal for an equity play rather than a value play you should expect to get better than a 4% return on your money. You could get 4% from other investments with less headache. What would be your primary exit strategy?
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