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Updated almost 9 years ago,
What do you think? Jumping into apartment investing!
Hey everyone! (Happy Valentines Day) :D
I'm looking at purchasing an apartment complex and wanted to hear what you all thought about the deal analysis so far.
It's a 23 unit property just outside of the DFW, TX area with all units rented for $550 with plenty of demand for future tenants. I have looked into the area and it seems to be a market that supports renters. The complex is in good condition and I am having someone I trust go to check it out on Tuesday with my agent. (I live out of country).
I have run the numbers, checked all the expenses, received a rather expensive insurance quote (13.5k), and am currently satisfied with the outcome of the analysis.
I will provide the numbers below but I'm primarily asking all of you to highlight anything you think I might have overlooked. I want to know what your experiences purchasing apartment complexes have been like! What did you wish you would have considered before you jumped in?
Gross Scheduled Income: $12600
Expenses (Maintenance, Management, Taxes, Insurance, Utilities (water & trash paid by owner), Landscaping, Common area electricity, CapEx, Vacancy, Internet for complex, security, etc.): $6400
Debt Service (5.5%, 20yrs, 80% of cost): $3700
Cashflow: $2500
Annual COC: 17%
I want to make sure I'm considering everything but also don't want to get stuck in analysis paralysis. I'm also open to hearing about better financing options!
Any feed back is greatly desired and appreciated!
Thanks guys.