analyzing a 6 plex

[Stephen Baird]

Hi folks,

I'm sort of geeking out on this 6 plex in in my home town and would be interested in gathering any advice ya'll may have.  Here is just a brief background about me. I've been on this RE investing path for a whole month, trying to learn while doing. During this month long evolution I've become interested in multifamily properties. I've done no marketing besides contacting a few agents, but I found a 6 plex close to home that is interesting and I have decided to get some real world experience from it. So here is the deal;

Built in 2005

close to schools, hospital, and downtown (which is blowing up due to new regional trail and lots of Walmart money)

$43,800 gross income

$9600 expenses based on trash, water, insurance guesses on my part. My agent I'm working with has had a hard time getting this info from sellers agent. 

$465,000 asking price. 

The only info I've received is the listing agent agreement and a rent roll with two columns that add up to $3675 per month and $3450 per month. I guess the MLS listed gross income is an average of these two snapshots. My agent has told me that the cap rate in this area is a 10.

So based on what I've learned from Brandon's podcast last week, and these numbers a fair or reasonable offer would be between 318,000 and 345,000. Right?

The reason I've focused on this property is to just get a feel for looking at and analyzing commercial property, get a feel for the agent I'm working with and see how this relationship would work, and most importantly the sellers are supposedly "motivated". Now whether they are motivated by their agents "hot air" or truly looking to sell I'm not sure yet. 

It feels like there is no deal here, but a guy has got to start somewhere. Thanks in advance for any feedback. 

Stephen Baird