So check if the lender even allows an assumption and the criteria involved.
$13900 under projected numbers.
I think this deal is solid if the hassle factor is low, the apts are reasonably low maintenance and you are very confident of your pro forma numbers. It could be excellent if you can push rents up too.
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I have to say something about this deal smells fishy to me. You say it in a good neighborhood and yet the current owner is willing to give it away when he could make it cashflow and keep it. You didn specify city or state but an ave. rent of $521 does not sound very impressive for most parts of the country.
You didn tell us about the debt details but with 20% down and a 6% note over 30yr amort. (for example) you get cashflow to equity of $3900 under current numbers and Nike Air Max 90 Sd
However be aware that using the numbers you just gave ($5k down, $345k loan at 6.5%, assuming 30yr amort.) you will be making NEGATIVE cashflow using current numbers. DSCR is 0.91. If you can save 10% off expenses your DSCR increases to 1.3 which is decent considering you put almost nothing in. But you have to be absolutely, 100% positive that your numbers are correct. If you cannot save that $10k or if you get just a couple of unexpected events legal fees from problematic evictions; a kaput water heater; an insurance hike etc. you will have to find money from Nike Air Max Black Woman
If you have not worked with a bank on this type of deal before be prepared for them to insist it cashflows with 1.2 or 1.25 DSCR on current numbers, regardless of projected numbers after repositioning. They will also likely require you to budget percentages for repairs and management even if you don plan to use them. I agree, a lower cap is worth it if you getting a $350k place for $5k (350 345).
Daniel, I used my Nike Air Max 90 Black Mens Trainers homebrew spreadsheet and came up with similar Nike Air Max 90 Floral
numbers to Uwe. On current numbers it a 6.8 cap with (almost) 1.2 DSCR which would barely squeak past most lenders requirements. But if you can save $10k in expenses you get to a 9.6 cap with 1.69 DSCR which in my opinion is very solid for a good property in a good neighborhood.
your own pocket to service the debt for many years until you can grow the equity by $80k to give yourself 20% for a refi.
One thing you haven told us is whether you can raise rents. If it a badly managed property in a nice neighborhood it implies the tenant quality and and rents are below where they should be. If that the case you should get additional forced appreciation from bringing better management.
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