12 Units apartment building in Martinsville, VA

[Olu Efunwoye]

Needs some general thoughts and inputs on this deal: 

12-unit apartment all 1Bed/1Bath, 2 buildings (within the same complex), built 1965 and 1974, listed in April 2024, listing shows it is 100% occupied, but found some recent listing for rent for some of the units for $595/month. 

Actual T12 goes thus: income $54,930, operating expenses $22,305 and NOI $32,625 as listed. With this T12 I am suspecting the apartment wasn't fully occupied in the preceeding 12 months, hence the low rental income.

I am very concerned with over 40% operating expense. Although the broker is claiming it is under-rent and a pro-forma NOI can be as high as

$52,883. Asking price is $699k

At 75% LTV in today's current rate scenario, this yields a negative cashflow. What are your general thoughts about tackling this deal?

Thanks