Updated about 8 years ago on . Most recent reply
Apartment Purchase Questions
Hey BP, I'm evaluating (2) 4 unit buildings on the same property that are 100% occupied and have been for 2 years. Revenue is $3900/mth. Expenses (Cap X, Mortgage, PM, Maintenance, Taxes, Insurance) = $3000/mth. There is a finished basement in one of the buildings that's currently being used for storage and a beauty/barber shop in the building. Owner Financing.
I would like some feedback on if the deal is attractive.
Thanks
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Greg Scott
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Greg Scott
#3 General Landlording & Rental Properties Contributor
Pro Member
#3 General Landlording & Rental Properties Contributor
- Rental Property Investor
- SE Michigan
Mac:
I'm not clear if you are looking at two quads or one 8 unit apartment. They are valued differently. Quads use Comparative Market Analysis and apartments are based on Net Operating Income.
To really evaluate the deal for either method, we also need purchase price and terms.
Owner financing can be really sweet. If they financed 100% of the purchase price, for example, you would be crazy not to take the free $900/month.
Good luck