20 unit apt complex analysis deal?

[George Allen]

Fully Rented Apartment Complex

Asking price: $2,135,000

Annual returns: $213,000

All 1 bedroom units are rented for $725 and all 2 bedroom unit $1,150

All units have their separate electrical meters and operates by a water well system.

communal laundry room

all roofing is brand new! - Just redone in 2019

This is all the information the listing provides. 

Property tax is about $34,000 a year I figure.

Not sure what I'm doing with the calculator.

What key questions should I be asking the listing real estate agent?

Thanks all for your time,

George

[Enrique Huerta]

What do you mean by Annual Returns? Is that the NOI or the Net CF?

You should ask:

For a copy of:

• -2 Years of Operating Statements
• -Current Rent Roll

You should look for the Property Tax bills. You should conduct a rental survey to ensure the rents are not too high or too low (Yes, too high can be a problem). 

Then, you should ask about the major mechanical systems (roof, plumbing, electrical, HVAC, foundation, etc.), you should research the market and neighborhood,ask for sale comps, and then you need to underwrite the deal.

I'm happy to help you with the analysis but I would need more information than what you provided. Get a copy of the rent roll and the financial statement. At a bare minimum, you need to know how many 1 beds and how many 2 beds there are. You also need a copy of the tax bill and to know how much laundry income they collect. We can create a "proforma" on the rest of the figures based on that data alone.