30 unit

[Drew McKinney]

Just looking for some great BP input on this potential 30 unit deal. I sent this guy a letter two years ago knowing that he had two 30 unit complexes. In two different towns. He called me and said he was really only interested in selling the one complex. A 30 unit place all 1 bedroom asking 550k. He showed me it and was in rough shape and in a rough area. I told him I wasn't interested in this one, but would certainly entertain the other place he had for sale. He wasn't interested in selling that one. About 6 months ago another investor/realtor advertised both buildings for sale at around 1.5 million. I called the owner again and he said they were both pretty much sold. Just talked to the owner this morning and they're both still for sale. I'm really only interested in the one complex with the two bedrooms apts and the numbers look something like this.... Two buildings 18 1 bedroom apts 12 2 bedrooms 2 bedrooms rent for 525 which is a little low for area. Depending on condition and size could be around 550 or 575 ( I haven't been inside yet) 1 bedrooms rent for 425. He says they're all occupied with waiting list. For the area and the price right now I don't doubt him, but we"ll see. Gross income is 160K Expenses Owner pays water and sewage 12000 yr 24000 taxes 4500 insurance 5000 common electric and gas 5000 garbage Asking price 800K He manages and does all the mtc so I'll have to come up with some numbers there for I won't be doing that. Brick and metal buildings, metal roofs Outside doesn't look too bad, will get inside on Monday. Using the "50% rule" this looks promising. We"ll see what the inside looks like. I have other smaller rentals in this town and they're always rented. Looking for feedback please Thanks, Drew