Where's the ROI?

[Steve Moody]

Ok, I must not be getting it, or I'm looking in the wrong areas. I've been looking at multi unit apt. complexes and just doing the simple math doesn't seem to makes sense. Here's one in particular that I've run some numbers on:

10 units, $585 per month per unit in rent
sale price $795k

According to the ad:
Scheduled Gross Income: $71,000 (my caculator must be broken 585 x 10 x 12 = 70,200)

Net Operating Income: $54,060

NOI seems a little inflated if you ask me (but you probably didn't :lol: )

If you put 10% down ($79.5k) your loan amount will be $715.5k

At 8% the payment will be $5250/month. That's a net loss of $745 per month.

It's not until I put down $182k do I get a whopping positive $7 per month. When I get to putting down $200k I'm making a bit more than if I'd put the money in a CD.

I read on here the advice of buy an apt. building with 10% down, is there anywhere that this makes sense?

Thanks for reading my rambling rant.
Steve