Should I buy this...

[Jake S.]

Current Asking Price $213,500  4 unit apartment building in nice area built in 1956 (no washer and dryer in each unit), 868 SF per unit,  Each 2 bed 1 bath (Similar market rents $650-$1100 depending on quality)

My Estimates      

Current Rent  $615/ unit  -  $29520/year

Vacancy   @5% $1476/year

Repairs & Maintenance   $4800/year

Utilities  $3600/year

Taxes   $4032/year

Insurance  $1440/year

Replacement Reserve  $1920/year

NOI = $18408

@ cap rate of 8% property value is $153,150

but if i get the rents to $750 a unit that brings property value to $230,000 and cash flowing $4900 per year

Should I buy for $213,500...Asking Price was $250,000 and they won't come down another penny

appreciate the advice

[Kevin Siedlecki]

No. You shouldn't. You know that; you just needed to hear it from a few of us to be sure.