First time Multifamily Investment
Have been looking to invest in properties at a US tier 2 city where I live in (think Dallas, Austin, Atlanta, Charlotte, etc.). I have identified a property that is a 5 unit asking for $1.3MM right outside a good area. After some diligence, I found that the current owners bought the property in 2017 for 800K and the 2019 tax assessment base is ~$650K with taxes close to $9K.
My questions are,
1) for those whose bought properties recently, how would you go about the initial offer? ideally I want to get it ~$1MM but willing to play ball.
2) Have 0.5MM in dry power so might need to get financing. would 80% LTV be possible? speaking to a mortgage banker next week but want to get a sense.
3) will the purchase price effect the tax assessment base? if so, might need to change my calculation of cap rate.
4) what are some services you need to offer to the tenants? I'm thinking HVAC/plumbing repair and just hire local contractors when something happens.
Appreciate any input or anything I should keep in mind of!
Associate 1 in PE - Growth, have you checked out these or run a search:
More suggestions...
You're welcome.
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