URGENT Help Needed - How much to offer on a 16 Unit Bldg?

[Daniel D.]

Hey Everyone, 

So i have a dilemma on how much money to offer for this building. I have a person that is selling a 16 unit apt building, in a great town, with low taxes. His family owns over 5-6 million sqft of commercial/industrial real estate so they are not interested in keeping this building any longer. 

I am the only one that has seen it and there are no other offers. 

These are the stats of the building, the expenses do NOT include a mortgage since the building was bought in cash. 

Few things to consider: 

1. Rents are about 20-30% below market. 
2. There is room to build 1-2 more 1/2 bedroom units. 
3. The building is VERY well taken care of, maintenance etc. 

Total Yearly Income: 163,000.00
Total Yearly Expenses Including Taxes, maintenance, snow removal etc: 53,000.00 (NOT including mortgage). 

If you were to buy this property, how much would you offer for it? The property is in New Jersey (north). 

Thanks

[Steven Ko]

You should pay bigger pocket to use their calculator unlimited amount of times...wait. You already did.