Im buying a negative cashflow 20 units, 1 yrs to get market rent. Owner financing 20 yrs 6.5% is it worth it

In Buying Property - Asked by Sonny N. - May 23, 2017
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Answer(s)

Jim H.
Phoenix, AZ

It sounds fair to me . Quantify the work necessary
, the DP and the % increase in rents.

May 23, 2017
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Antonios P.
Owner/Investor
Maspeth, NY

Absolutely not. Dont buy with speculation.

May 23, 2017
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Mark S.
Owner/Investor
San Mateo, CA

At 6.5% u may be doing the seller a favor. Can u not get bank fin of around 4.5?

May 23, 2017
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Control O.
Owner/Investor
Houston, TX

GET A BETTER RATE. 4.5% AND LOWER MONTHLY PAYMENTS.

May 23, 2017
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Jient L.
Tarzana, CA

Unless the Property is of your best interests, why go for a negative cashflow? Chase Bank, NA can do a 5-, 7-yr. fixed to float at 4.5% or less with 35-45% down; check Chase out! I don't see 6.5% interest rate anytime soon.

May 23, 2017
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Caleb K.
Broker/Agent
Sacramento, CA

I will go in as a general partner in the deal and help you reposition it.

May 24, 2017
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Michael H.
Broker/Agent
San Francisco, CA

It depends on the market.

May 24, 2017
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Ranga R.
Owner/Investor
Lake Zurich, IL

Need more info, the answer is very situation specific. Do you have a sure fire way to turn the property around in terms of reducing expenses or increasing income? What do you mean by 1 yrs to get market rent? Why is the current owner not getting market rent? is there a conceivable reason? Usually lower than market rent means neglected property, who is going to finance the repair works so that you can increase the rent? Will raising to market rent support a positive cash flow after your repair cost?

May 24, 2017
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Tony S.
Broker/Agent
Fountain Valley, CA

Good answers. I'll just add this, purchase a property with positive cash flow and it almost doesn't matter if the market goes down for a year or two.

May 27, 2017
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