Analysis on this 12 units Apartment

[Stan Yen]

Hello BP members,

I am just recently join the BP forums, so I'm not sure if I posting this at correct section.

I am trying to analysis if this deal will work out base on the limited knowledage I have and hope I get number close enough to more experience investors. Please correct me if I have anything incorrect, that will be highly appreciate.

Following will be the numbers and detail.

Purchase price: $275,000

EGI: $51,340 (this area rents about $400-$500 1bed/1bath)

OE: $25,896 (50.44% of the EGI)

NOI: $25,444

DS: $17,285 (30yrs @ 6.8%)

CADS: $8,159

CAP rate: 9.25%

CROI: 14.83%

DSCR: 1.47

I am trying to make this deal in to a seller finance for at least 10%, but I am not sure how most investors do that.

Thanks all,

[Roy N.]

@Stan Yen 

The actual expenses are always higher and the revenues always lower.   Your typical pro-forma deserves a health dose of scepticism.