[Calc Review] Help me analyze this deal - Small (45 units) MHC

[ROBERT M KIRILA]

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[Frank Rolfe]

I don't know all the details (and that report does not give many of the essential ones) but I can tell you that the expense ratio will be far higher than 25% (more like 30% to 40%) and that the cap rate is far too low to interest most people. But there are many components to a deal other than just the price, such as infrastructure, age of homes, location and potential rent increases, so there may be much here that is positive that I just can't guess from that summary report. 

Clearly you would NEVER want to buy a property that has negative cash flow and a negative ROI unless you have concrete steps to fix that immediately.