Deal Summary: Your Thoughts · Commercial Real Estate 101

Deal Summary: Your Thoughts

The seller owns a 10-unit multifamily building, currently with two vacancies. He self-manages the property but does not have a clear expense ratio. Known annual expenses include:

Property taxes: $8,000
Landscaping: $3,600
Insurance: $14,000 (currently working to reduce this)

The property generates $11,800 in gross monthly income. The seller owes $600,000 on the asset, with a monthly mortgage payment of $5,200 at a 3.75% interest rate. He is open to seller financing but is also willing to accept $1.6MM in cash.

I’d appreciate your insights on:

How this deal could be structured creatively
Key risks or red flags to consider
Whether this opportunity is worth pursuing based on the financials and seller flexibility

4 comments