How do you value a 60 unit apart. complex when it's 20% occupied?

[David Turnage]

How do you value a 60 unit apartment, when after clearing everyone out 1 year ago and starting over fixing units up and renting them out for $500/month. Right now there are 15 tenants, with 4 units available.

[Ray Johnson]

@David Turnage Class D properties are considered a specialty Real Estate Class, If you do not currently work in the D-Class arena, You'll want to make sure you partner with someone that has experience in this sector. A lot of people think they can take on this tenant class not knowing that standard REI principles and practices do not apply to the D-Class arena.

Did you ask him where he got the 1MM number? 

At $500 a month rents before expenses in the D-Class space, combined with Owner Financing, and the need to rehab 41 of the 60 Units, and being in a small town of less than 1,600 people, the only thing good that will come out of this deal is that you'll rehab his remaining 41 units for him then somewhere along the line realize you'll never make any money on this deal.