| Brooklyn,
New York
Brick investment building, 8-2BR apts.,
5-min from Dekalb L train
Our company has a brick building located in the Ridgewood/Bushwick
area of Brooklyn for sale. The building contains 8 2 Bedroom subway
style apartments. The asking price is $1,425,000. There is $1,035,000
in assumable mortgage payments to start September 1st 2005. You will
need $390,000 cash to buy the building. Here are the details of the
deal.
Location
The building is located a 5 minute walk from the Dekalb L train stop
on Irving Avenue. The building is nearby a local school and hospital.
Condition
The building has all new electrical, plumbing, boiler and 2 water
heaters. All of the apartments contain a new kitchen and bathroom.
Currently we are making repairs to the interior of the apartments and
they will all contain new 8.2cm thick tongue and groove laminate wood
floors. The outside of the building will be delivered with new a cast
iron fence and rail.
Income and deal information
The buildings income and expenses are the following:
$120,252.24. Gross income
-$20,702.58 Actual Expenses
=$99,549.66 Net Income before mortgage debt
-$49,197.24 Annual first mortgage payment (12 Year first mortgage,
amortized over 30 years, of $735,000 at a fixed 5.34% for 7 years with
an adjustable 1% above prime rate AND a cap at 10% for the final 5
years.)
-$18000 Annual second interest only mortgage of $290,000 at a fixed
6.206% for 5 years.
=$32,352.42 Net income after mortgage debt
$32,352.42/$390,000*100=8.29% Net ROI
Through the financing you have bought yourself a full 5 years with a
10% ROI on your $390,000. At the end of 5 years you should seek to
refinance or sell the property in September 1st 2010. After
refinancing in 2010 your ROI should still stay at 10% due to the
guaranteed rental increases from the housing programs in place with
the building.
In addition to the above we have paid the following bills
$724.07 3rd Quarter Taxes
$3661.92 Water and Sewer bill for 1 year till July 2006
$3784.38 Insurance for 1 year till July 2006
=$40,522.49 Effective Net Income for the first year
$40,522.49/$390,000*100=10.39% Net ROI for year 1
Other details
We are selling the building at a discount to the current market prices
in the area. The Bushwick/Ridgewood area is currently priced at 13x
gross income. We are asking 11.85 times gross income.
Additional benefits
You will not have to pay the LLC incorporation fees since we have
placed the building in a new New York State LLC.
The 2.8% mortgage tax of $1,035,000*.028=$28,980 for commercial
property has been paid.
We will guarantee the gross rent roll for 1 year after purchase.
We will provide full documentation, engineering report, leases, actual
copies of the bills, DHCR Rent Roll etc.
We are selling the building as a package with the LLC and financing in
place. We are looking for a buyer with $390,000 who can close before
September 1st 2005. If we sell the building our company will be use
the funds to handle a condo conversion project. If we do not sell the
building we will hold it as a rental income property.
The price is FIRM and should sell quickly since we are offering an
attractive financing package that allows for an average return of 10%
or higher. You can decide to refinance after a few years or sell the
property as the Bushwick/Ridgewood area is poised for rapid
development.
Asking Price $ 1,425,000
Contact:
Andy at 646-283-8525
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