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Category: Big Deals Current Grade: A Total Views: 1368 Member Comments: 4 |
Posted on: 05/01/2008 Posted by: crystalwillett Blog Points: 5079 View all blogs >> |
I'm sorry. .the numbers weren't clear.
Let me try to show the numbers in better light.
Total package of houses 6
Duplexes and Tri-plex, all rented.
Total cost $190K
Each house, that comes to $31,670
Rents:
House 1-5 collect $550 each x 5 = $2,750 per month
House 6 collects $1050.00 per month
Total rents per month: $3800.00
ARV: House 1: $85K, 2: $83K, 3. 101K 4. $84K 5. $83K and 6. $86K
THREE are already lease optioned and the owner did the lease options for $56K (as is). that is part of the $550 per month above.
All need work, but are livable. Need kitchen, bath updates, new carpets, some floors need replaced, etc..
Terms:
10% down. $180K financed on a lease option for 6 years. Each year, I have to pay a house off (either by private lender or selling, etc.). 10% interest on 30 year term.
What I'm not sure about is the rental deposits and the lease option down payments... if they transfer to me or not.
That's the better breakdown. Hope I didn't leave any numbers out.
property one: $463.00
two: $308.67
three: $348.09
four: $313.24
five: $442.52
six: $386.32
Insurance, I dont' know yet.
Crystal,
We are getting closer on the numbers but, there is more information missing. You said, "they all needed repairs"
We need an estimate of repair rehab expenses for the three properties that DO Not have a 56,000 lease option on them. Those three with the lease option on them are locked in to a 25% return, if the current renters exercise their options. On those three it does not matter what the ARV is or what the repair expenses are right now.
You are going to make your most profit on the last three. Are you going to try to rehab them one at a time and sell them? Or rehab them with the people in them and try to sell them to the occupant?
Jeff, correct me if I am wrong here.
property 4 84000 ARV (need rehab estimate)
property 5 83000 ARV (need rehab estimate)
property 6 86000 ARV (need rehab estimate)
253000 ARV
-95010 offer
38% + plus total rehab estimate + holding costs (taxes, payments) + costs to sell
Crystal,
At first glance this looks like a great deal, let's finish the numbers game.
Best regards,
Dewain