What do you think? Jumping into apartment investing!

[Simon Cox]

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.

[Troy Gravett]

is the building master metered or individually metered? Are the utilities getting passed on to the tenants? What's the tenant turnover rate, in other words how often are people moving in and out and how long is the average tenant staying? The more often tenants are moving out the more you have to spend turning over the units. Are there any other revenue streams you can take advantage of that haven't been implemented yet? also, have you budgeted for legal and accounting. Always good to have money set aside as reserves for unforseen issues as well.