5 unit with owner financing and 3 garages
One of my brokers passed this over to me while she was looking at another property for me in the area. Turns out it was on the MLS and she thought I might like it given it’s a 5-unit. It’s in Harrisburg, PA and was acquired by the previous owner from a sheriff’s sale for 67k in 2013. Asking 625k with 125k down, 6% over 30 years with a 5 or 10 balloon. Gross rent=77,700 reported expenses = 21,280 (pending schedule E) Assumed NOI (50% exp ratio) = 38,850 CAP= 6.2% 5-2BR/1Ba rented at 6125/mos with 3 garages for 350/mos coin operated laundry in building to offset general area electric. Tenants pay utilities, landlord pays for sewer and water. Estimated expense ratio is 47%. These numbers work but not at 6% interest rate. Agent said seller is open to negotiating. Thoughts?