Well since JScott put his deal out for all to see and critique I will show mine. I hope it closes soon and it will be done.
4 acres just outside the city limits of a growing city (25,000 pop).
75 feet of road frontage on a state hwy(not freeway)
It has 1 site built frame house and 4 older mobile homes on it.
The gross cash flow is $2500/ month.
Owner pays for water and trash dumpster and the renters pay him back.
Individual electric meters.
Property will be annexed by city June 2009
Asking $145,000
My RE agent provided sold comps showing property in value in the rang of $180k-$200K Offered $125,000 and he countered $130,000, we accepted.
Located a local bank to finance and I'll put 10% down(also another prop as collateral)
They are going to carry the note 3 year note amortized over 10 years at 7%.
Payment will be approximately $1350 a month
Insurance is About $1100 a year.($92/ month)
Taxes right now are $1200($100/month)
Taxes will go up after annexation, not sure how much.
All the houses are on 2 of the acres leaving 2 unused.
Plan is to rent out the other 2 acres for other mobile homes, RV storage, or big rig parking.
When the property is annexed it will be zoned for retail but whatever I have on it will be grandfathered in.
So my CF on the property is $2500-$1350-$92-$100=$958- any maintenance.
All of the properties are rented on a cash basis to immigrants. The current owner does minimal maintenance. He is an immigrant also. His words were that if they want something fixed in the houses they(the tenants) fix it. If they want something in the house they(the tenants) get it. All he provides for them is a place to live.
The mobiles are old, will need some clean up and up dating. The frame house will need exterior paint. Owner says he wants to sell to move back to his home country.
The plan is to get as much CF out of the property as soon as possible before annexation. Then hold on to the property to gain as much out of the CF and sale price as possible.
Ideas? Suggestions?
4 acres just outside the city limits of a growing city (25,000 pop).
75 feet of road frontage on a state hwy(not freeway)
It has 1 site built frame house and 4 older mobile homes on it.
The gross cash flow is $2500/ month.
Owner pays for water and trash dumpster and the renters pay him back.
Individual electric meters.
Property will be annexed by city June 2009
Asking $145,000
My RE agent provided sold comps showing property in value in the rang of $180k-$200K Offered $125,000 and he countered $130,000, we accepted.
Located a local bank to finance and I'll put 10% down(also another prop as collateral)
They are going to carry the note 3 year note amortized over 10 years at 7%.
Payment will be approximately $1350 a month
Insurance is About $1100 a year.($92/ month)
Taxes right now are $1200($100/month)
Taxes will go up after annexation, not sure how much.
All the houses are on 2 of the acres leaving 2 unused.
Plan is to rent out the other 2 acres for other mobile homes, RV storage, or big rig parking.
When the property is annexed it will be zoned for retail but whatever I have on it will be grandfathered in.
So my CF on the property is $2500-$1350-$92-$100=$958- any maintenance.
All of the properties are rented on a cash basis to immigrants. The current owner does minimal maintenance. He is an immigrant also. His words were that if they want something fixed in the houses they(the tenants) fix it. If they want something in the house they(the tenants) get it. All he provides for them is a place to live.
The mobiles are old, will need some clean up and up dating. The frame house will need exterior paint. Owner says he wants to sell to move back to his home country.
The plan is to get as much CF out of the property as soon as possible before annexation. Then hold on to the property to gain as much out of the CF and sale price as possible.
Ideas? Suggestions?
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